FSC welcomes bipartisan support for RIC and CCIV
The Financial Services Council (FSC) has said it was encouraged to see the Senate Committee’s support for Retirement Income Covenant (RIC) and Corporate Collective Investment Vehicle (CCIV) as means to provide certainty to the industry.
“The CCIV will underpin major export opportunities for the Australian funds management industry and help our financial services industry contribute to Australia’s post-COVID recovery,” FSC acting chief executive, Blake Briggs, said.
The CCIV regime, under which fund managers would be permitted to use a company structure with flowthrough tax treatment, should help address an export gap for Australia, with foreign capital currently only 5% of investment into Australian managed funds, the FSC said.
At the same time, the RIC, which would require superannuation funds to develop a retirement income strategy for fund members who are retired or nearing retirement, would be expected to help a growing proportion of Australians plan with certainty as they move into their retirement.
The FSC recommended the measures were passed “as soon as practicable” to provide certainty to its members.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.