POWERED BY MOMENTUM MEDIA
ASIC cautions against mixing crypto with SMSFs
The Australian Securities and Investment Commission (ASIC) is warning consumers to watch out for an increase in marketing recommending they switch from retail or industry superannuation funds to cryptocurrency-focused self-managed superannuation funds (SMSFs).
The corporate regulator’s warning followed its move to shut down unlicensed Queensland financial services business A One Multi Services in November, alleging the firm had engaged in unlawful activity by transferring $2.4 million from A One Multi to buy crypto-assets.
ASIC also alleged that one of A One Multi’s directors, Aryn Hala, told investors that they would receive annual investment returns of over 20%.
In its message to superannuation members, ASIC said it was best practice to seek advice from a licensed financial adviser before agreeing to transfer superannuation out of a regulated fund.
ASIC told members of the public to avoid relying on social media ads or online contact from someone promoting an ‘investment opportunity’ and to be wary of unsolicited correspondence from people advising to invest in crypto via an SMSF.
In October, ASIC released guidance on crypto-asset related investment products, providing advice on good practice on how to “admit and supervise” crypto products and how product issuers could establish and operate them.
ASIC said SMSF members must be careful to follow the rules governing investments the SMSF could make and taxation consequences for those investments, including cryptocurrencies.
“Any investment must be permitted under the fund’s trust deed and be in accordance with the fund’s investment strategy,” ASIC said.
“When developing and reviewing your investment strategy you need to document how your fund’s investments will meet your retirement goals having regard to diversification, the risks of inadequate diversification, liquidity and the ability of the fund to discharge its liabilities.
“You must also be able to demonstrate that the fund owns the asset.”
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment