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Australian Immigration Daily News
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Announcement on SIV and PIV
As per the below announcement from Austrade, we now have confirmation of the new SIV investment regime effective 1 July, 2015. On initial review of the draft options and final frameworks documents (attached) the main differences are:
- the Venture Capital has been reduced to $500k although may rise to $1M within 2 years. Have addressed the “uncalled capital” question by having the remainder of the committed funds held in escrow in a Cash Management Trust or Australian bank account as security for a bank guarantee in favour of the Venture Capital fund
- Emerging companies still $1.5M although allowing up to 10% in foreign companies i.e. New Zealand (this may mean we have additional group product that meets the requirements)
- For Balancing Investments, the addition of Listed Investment Companies (LIC’s) as well as holding the complying assets through managed funds.
The wording for Corporate bonds is: “Corporate bonds or notes issued by an Australian exchange listed entity (or wholly owned subsidiary of the Australian listed entity) or investment grade rated Australian corporate bonds or notes rated by an AFS licensed debt rating agency.”
Immigration blog
To an investor such as in PRC, Venture Capital is not transparent exceipt it meant high risk share investment in a totally strange environment. If there is such a thing as Managed Venture Capital Fund at least with some track record on performance, these should be made known. Also investing 1.5 M in selected emerging companies, how to define such list of companies?
Oversea investors are usually very smart. They will not easily part with their money with at least $2M at high risk where average Australians relunctant to tread.