A recent rise in unlicensed advisers offering to assist SMSF trustees to invest in cryptocurrency assets has prompted the ATO to advise caution among trustees and recommend seeking advice only from licensed financial advisers.
Acting on advice from unlicensed advisers means the usual consumer protections and access to the Australian Financial Complaints Authority will not be available.
There are many things to consider before deciding to invest in crypto assets, so it’s important to get it right, since trustees are ultimately responsible for ensuring the investment complies with super and tax laws.
When investing in crypto assets, trustees must ensure it is allowed under the fund’s trust deed, is made in accordance with the fund’s investment strategy, and the trustee has considered the level of investment risk given the highly volatile nature of the investment.
From a regulatory perspective it is also important that:
- The crypto assets are owned by the fund and are held separately from the trustee’s own personal or business assets. This means the fund must have its own digital wallet, separate to any used by the trustee for personal or business purposes.
- The investment is valued at market value in line with the ATO’s valuation guidelines.
- Any crypto assets that a member or related party hold personally are not sold to the fund or transferred to the fund as a contribution.
- The investment is consistent with the sole purpose test, and does not involve the giving of financial assistance to a member.
Robinson Voss Partners can provide further information and support for SMSFs considering crypto, and we welcome you to contact us to find out more. Phone our team on 03 9708 8801 or email firstname.lastname@example.org.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.