The government will move to introduce two new classes of collective investment vehicles, it announced in last week's budget. The move, while welcomed by commentators, also came with the caveat that there was more work to do for the initiative to have a positive impact on the local wealth management industry.The government announced that a corporate CIV would be introduced for income years starting on or after July 1, 2017.This will be followed by a limited partnership CIV for income years starting on or after July 1, 2018.The new CIVs will have to meet eligibility criteria as managed investment schemes, which means they will have to be widely held and engage primarily in portfolio investment. Investors in these new CIVs will generally be taxed as if they had invested directly - that is, on a pass-through basis.According to the budget papers, "these reforms will enhance the international competitiveness of the Australian managed funds industry by allowing fund managers to offer investment products using vehicles that are commonly in use overseas."Law firm K&L Gates agrees. It said in a commentary: "Traditionally, foreign investors have been dissuaded from investing in Australian funds due to their lack of familiarity with the unit trust structure. Foreign investors are familiar with both corporate and limited partnership CIVs."The new CIVs will help attract foreign investors to Australia, improving the marketability of Australia's managed funds internationally."Law firm Minter Ellison said the CIV initiative was designed to improve the effectiveness of the Asian Region Funds Passport, which is a framework for the cross-border marketing of managed funds in participating markets.Late last month Australia, Japan, Korea and New Zealand signed the Asia Region Fund Passport Memorandum of Co-operation, which will come into effect on June 30, after which participating economies have up to 18 months to give effect to the memorandum.Minter Ellison said there was work still to be done, with the final design of CIV tax arrangements subject to further consultation between Treasury and industry.Also, there are various models of corporate and limited partnership CIVs operating overseas and it is not yet clear what the final form will look like in Australia.