Premium investor visa merits questioned



Legal firm Hall and Wilcox is concerned Australian fund managers will find it tough to implement the new premium investor visa (PIV).
Partner at the firm Harry New believes the quicker 12-month period for the PIV could create problems for fund managers.
"The devil will be in the detail, and we look forward to finding out more," he said.
"But the short-term nature of the proposal raises some issues around how fund managers can structure their products in a way that attracts investment, yet provides adequate protection."
The federal government this month announced the PIV, which offers a quicker 12-month route to permanent residency for those investing $15 million or more into Australia.
This way, the funds will go into higher-risk infrastructure projects instead of lower-risk sovereign bonds and managed funds.
But New believes fund managers will question the value of bringing inflows that may only last 12 months, adding the current significant investor visa scheme demonstrated that linking foreign funds with visas was not as beneficial as initially thought.
"For example, there are certain cultural requirements to consider. A product that is attractive to Australian investors may not attract foreign investors," he said.
"There is also significant uncertainty in relation to what are complying investments for the PIV, and how the nomination process for the PIV will work."
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