In a statement, Xpress Super chief executive Olivia Long said the partnership was intended to meet “growing levels of investor demand” for cryptocurrency assets.
“We are being inundated with inquiries from SMSF trustees wanting to jump on board the cryptocurrency bandwagon,” she said.
“Our role as SMSF compliance specialists isn’t to give advice to self-directed investors on whether this is the right investment option for their fund, but to ensure they are compliant if they do invest.”
Ms Long said meeting SMSF audit requirements was one of the most difficult processes for SMSF trustees hoping to include cryptocurrency in their portfolio.
If you have an SMSF and you are going to buy crypto currency, whilst I don’t think it’s a good idea, please at least update your SMSF Investment Strategy beforehand to a) specify that this is a permissible investment and why and b) specify the amount your SMSF may invest. For example up to 1% of the fund assets.
Agreed Anonymous (re the way cryptocurrencies can be bought and sold). As far as SMSFs investing in cryptocurrencies, it shouldn’t be too onerous. Just have the trust deed updated and ensure that this type of asset is allowed. The most important thing for SMSF trustees to do is to educate themselves around how this works and not just purchase random cryptocurrencies. The other very important thing (which is part of the education piece) is learning how to store cryptocurrencies safely and completely offline (i.e. NOT on an exchange!) Currently either paper or hardware wallets are the safest ways to do this, the hardware wallet being the safest and best option at this stage.
Trust Deed update probably not required. SMSF Investment Strategy, which is a collateral document to the Deed, will need to allow this type of “investment”. See s52 of the SIS act.
Interesting, since crypto doesn’t require a broker to buy or sell. SMSF trustees can buy direct through an exchange. I suspect of course most SMSF trustees simply don’t know how and are turning to compliance firms for advice, and its not an area of expertise for compliance specialists, hence the partnership.