A SMSF is permitted to invest in Unlisted Options. Clients of ESUPERFUND are permitted to use any Australian based Unlisted Options Provider to purchase Unlisted Options for their SMSF. To simplify the Unlisted Options Application Process ESUPERFUND has established direct arrangements with Commsec allowing clients to easily apply for an Unlisted Options Account through our website. More about the Commsec Options Account can be found here.
Commsec Options Account Not Compulsory
It is not compulsory to use the Commsec Options Account and clients are permitted to invest in any Australian based Unlisted Options Provider to purchase Unlisted Options for their SMSF. That is clients are only permitted to invest in Unlisted Options using an Australian based Provider and cannot trade Unlisted Options using Overseas based Provider. This is due to the complexity involved in accessing the required data in the format required in relation to trading activities and currency movements involved with Overseas Providers. In addition, Overseas Providers typically do not recognise SMSF Investors and will typically setup accounts in the Trustees Individual names. This is a breach of SMSF laws and not allowed.
Account Must be setup in SMSF Name
If you elect to setup an Unlisted Options Account other than with Commsec, then when establishing the Unlisted Options Account with an Australian based Provider, the Account must be setup in the SMSF Name and not in the personal names of the Trustees. Most Australian based Providers will setup accounts in the name of the SMSF. Unfortunately if the Australian based Provider selected by you does not setup accounts in the SMSF name then you will be unable to use that Provider to invest in Unlisted Options.
If you elect to setup an Unlisted Options Account other than with Commsec, then in relation to record keeping for Unlisted Options Investments, ESUPERFUND will send you a Checklist each year guiding you on what documentation we require to prepare your SMSF annual compliance requirements. This is typically all Trades during the Financial Year as well as confirmation of Unlisted Options Holdings at 30 June each financial year.
No financial product advice or recommendation
No Advice Express or Implied: It is important to understand that ESUPERFUND has not taken into account any particular investor's objectives, financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products either expressly or implied. ESUPERFUND expressly states that it does not recommend, represent as suitable, or endorse any financial product or service available through ESUPERFUND. This applies in relation to the Commsec Options Trading Account. ESUPERFUND does not advise or recommend that this product is suitable to a particular investor’s financial requirements or needs in relation to their SMSF. Any information provided in relation to the Commsec Options Trading Account is factual information only about the operation of the account and how data is made available to ESUPERFUND. Accordingly you should read the disclosures relating to the Commsec Options Trading Account before making any decision about whether the Commsec Options Trading Account is suitable for your SMSF needs. We also recommend that you should seek professional advice from a financial adviser before making any decision to use the Commsec Options Trading Account for your SMSF.
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