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#EveryoneNeedsaPlan When Considering Crypto Investments in Their SMSF
Posted by G. Dean McKinnon
on 25 February 2022
ASIC recently published a warning about including crytocurrency ('crypto') investments in Self-Managed Super Funds (SMSF).
Unlike traditional investments crypto investments are difficult to research and rate unlike commonly traded investments such as cash, property, shares. As a result, the investor is placing their investments at high risk of the return and capital invested. Further, crypto investments are generally not traded on traditional market platforms such as stock exchanges like the ASX, and therefore escape the scrutiny of regulators such as ASIC.
ASIC and other regulators of investment markets monitor those markets and their participants to ensure the investor's interests are protected when dealing with their financial investments. An investor dealing in unregulated markets increases the risk associated with the investments being made.
A SMSF is responsible for making their own investments unlike traditional super investment managed funds where the fund manager is responsible for making decisions about the underlying investments for the members. If the SMSF trustee does not have experience in making and managing investments for the members of the fund, then not only are they placing the investments at risk, they also face consequences from ASIC in relation to their duties and responsibilities to the members.
ASIC strongly recommend superannuation fund members seek advice from licensed financial advisers before agreeing to transfer superannuation out of a regulated fund into an SMSF. McKinnon Financial Planning is licensed to provide advice in a comprehensive range of financial investments including superannuation and SMSF structures. Please do not hesitate to contact us to arrange our free initial consultation discuss your requirements.
Unlike traditional investments crypto investments are difficult to research and rate unlike commonly traded investments such as cash, property, shares. As a result, the investor is placing their investments at high risk of the return and capital invested. Further, crypto investments are generally not traded on traditional market platforms such as stock exchanges like the ASX, and therefore escape the scrutiny of regulators such as ASIC.
ASIC and other regulators of investment markets monitor those markets and their participants to ensure the investor's interests are protected when dealing with their financial investments. An investor dealing in unregulated markets increases the risk associated with the investments being made.
A SMSF is responsible for making their own investments unlike traditional super investment managed funds where the fund manager is responsible for making decisions about the underlying investments for the members. If the SMSF trustee does not have experience in making and managing investments for the members of the fund, then not only are they placing the investments at risk, they also face consequences from ASIC in relation to their duties and responsibilities to the members.
ASIC strongly recommend superannuation fund members seek advice from licensed financial advisers before agreeing to transfer superannuation out of a regulated fund into an SMSF. McKinnon Financial Planning is licensed to provide advice in a comprehensive range of financial investments including superannuation and SMSF structures. Please do not hesitate to contact us to arrange our free initial consultation discuss your requirements.
Author:G. Dean McKinnon
| Tags:SuperannuationInvestment |
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