ASIC Form 5240 Sets Notification Requirements for CCIV Sub-Fund Name Changes

Key Takeaways

• ASIC's Form 5240 is the mechanism a corporate collective investment vehicle (CCIV) must use to notify ASIC of a proposed sub-fund name change under the Corporations Act 2001.
• The form carries strict lodgement windows of 14 or 60 days depending on the trigger, and late fees apply.
• Compliance teams at CCIV operators should confirm that their name-change workflows meet these deadlines and the related requirements.

Deep Dive

ASIC's Form 5240 is the mechanism a corporate collective investment vehicle (CCIV) must use to notify ASIC of a proposed sub-fund name change under the Corporations Act 2001. The form carries strict lodgement windows of 14 or 60 days depending on the trigger, and late fees apply. Compliance teams at CCIV operators should confirm that their name-change workflows meet these deadlines and the related requirements.

The form covers two triggers. The first is a name change following a CCIV name change by special resolution under s157 (s1222Y), which must be lodged within 14 days of the special resolution. The second is a name change following an ASIC direction under s1222Z, which must be lodged within 60 days of that direction. The form also asks whether the sub-fund is in liquidation. Lodgement carries no fee (AUD $0), but late fees apply outside the lodgement period. A form is not treated as lodged until ASIC receives it and accepts it as compliant with s1274(8). ASIC issues receipts only on request.

Related requirements deserve attention. Where the CCIV itself is changing its name, Form 205 (Notification of resolution) must be lodged alongside Form 5240 for any associated sub-fund. The proposed name must not be identical to the second element of another sub-fund's name within the same CCIV. It also must not be identical to a name reserved by ASIC for another person, and it must not be unacceptable for registration under the regulations. Annexures must meet formatting requirements, including A4 paper, a 10mm margin, identification of the sub-fund name and ARFN, and the signature of the same person who signed the form.

Recommended actions: (1) add the 14-day and 60-day deadlines to the corporate actions and regulatory calendar, with internal escalation points well ahead of each; (2) build a pre-lodgement checklist covering name availability, Form 205 pairing, signatory authority and liquidation status; (3) confirm that the board or corporate director has approved the special resolution and that signatories understand the declaration; (4) check that investor communications, product disclosure documents and marketing materials are updated consistently with the new name; and (5) keep evidence of lodgement, since receipts are not issued automatically.

Risk implications are moderate and mainly operational and conduct-related. Missed deadlines trigger late fees and potential regulatory scrutiny. An inaccurate declaration or a non-compliant name could result in rejection, delay or a breach of the Act. Because the form is administrative and has no lodgement fee, the financial impact is low. Weak change-management controls could still create reputational and investor-disclosure issues.

Source: Australian Securities and Investments Commission