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SMSF Diversification with Cryptocurrency and Tokenised Assets

Enthusiast

Views 271

Replies 3

Good morning ATO Community.

Hypothetical: If a SMSF has a majority of the fund invested in cryptocurrency via an Australian Exchange (eg. Binance Australia), then had the remainder invested in Stock Tokens on the same exchange (eg. Tesla, Apple, etc).  Would this be considered diversification? 

Thank you.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Daschel,

 

Whilst we do not provide advice on what an SMSF should invest in, there are rules around this, you need to ensure your fund is compliant under SIS regs and consider these when investing. Your SMSF auditor needs to ensure appropriate audit evidence is obtained to show your SMSF has a compliant investment strategy (Regulation 4.09 SIS Regs). This investment strategy also needs to consider entire circumstances of the fund including risk, return, liquidity, diversification and any insurance needs. 

 

We would recommend you discuss your investment choices with the Auditor of your fund. They oversee and advise whether your fund meets the investment strategy diversification requirements under the SIS regs. We also have information on our website you can view via the link below.  

 

If you still require assistance, you can email our super area, superadvice@ato.gov.au.

 

Links-

Your SMSF Investment strategy. 

 

All the best.  

3 REPLIES 3

Community Moderator

Replies 2

Hi @Daschel,

 

We will have a look into this one and get back to you as soon as we can.

Enthusiast

Replies 1

Hi @KylieATO,

Thank you for that.  Stock tokens are still very new, so I thought it might not be very straight forward.

Can I push my luck and add a third asset type?  Cryptocurrency ETFs (Soon to be appearing on the ASX).

 

Thanks again (and apologies).

 

 

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Daschel,

 

Whilst we do not provide advice on what an SMSF should invest in, there are rules around this, you need to ensure your fund is compliant under SIS regs and consider these when investing. Your SMSF auditor needs to ensure appropriate audit evidence is obtained to show your SMSF has a compliant investment strategy (Regulation 4.09 SIS Regs). This investment strategy also needs to consider entire circumstances of the fund including risk, return, liquidity, diversification and any insurance needs. 

 

We would recommend you discuss your investment choices with the Auditor of your fund. They oversee and advise whether your fund meets the investment strategy diversification requirements under the SIS regs. We also have information on our website you can view via the link below.  

 

If you still require assistance, you can email our super area, superadvice@ato.gov.au.

 

Links-

Your SMSF Investment strategy. 

 

All the best.