Australian Share Broker Account
A SMSF is permitted to invest in Australian Shares and Other Listed Securities (eg ETFs, Bonds, Options, Warrants, LICs, LITs, etc). Clients of ESUPERFUND are permitted to use any Broker to invest in Australian Shares and Other Australian Listed Securities for their SMSF. To simplify the Australian Share Trading Account Application Process documentation to establish a Commsec Share Trading Account (Commsec) is included with the documentation forwarded to you when you submit your online application to establish an SMSF. By using CommSec as the Broker to invest in Australian Shares, ESUPERFUND is able to electronically access the Broker Data for your SMSF in order to attend to the SMSF Annual Compliance Requirements. No Broker Data records are required from you each year as we already have the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your Broker Account and cannot actually login to your Broker Account to access the required data.
Commsec Account Not Compulsory
It is not compulsory to use the Commsec Account once the account is established and you are permitted to use another Australian Share Trading Account for your SMSF if preferred. However, if you establish another Australian Share Trading Account, data will not be accessible by ESUPERFUND and you will need to source and provide this data to ESUPERFUND annually. In addition, ESUPERFUND provides a Client Login Portal to clients with real time data of all your SMSF Investments. Where you elect to use another Australian Share Trading Account, we will be unable to receive daily data on these accounts, and in turn will not be able to report details of these accounts in real time.
Invest in All ASX Listed Shares and Securities
Commsec allows your SMSF to invest in all ASX listed Shares and Securities including:
- All ASX Listed Shares
- Exchange Traded Funds (ETFs)
- Exchange Traded Commodities (ETCs)
- Listed Investment Companies (LICs)
- Listed Trusts
- Listed Bonds
- Listed Options
- Listed Warrants
- Any other Securities Listed on the ASX
As detailed above documentation to establish a Commsec Broker Account is included with the documentation forwarded to you when you submit your online application to establish an SMSF. The account acts as the Trading Account for your SMSF allowing you to trade all ASX listed Shares and Securities. The Trading Account Application will only be forwarded to CommSec once the ATO has issued an ABN and TFN for your SMSF. CommSec will process the Application and then notify you directly of your Trading Account details including the account number, login, password and the CHESS holding number (HIN) in approximately 2 to 3 weeks from the date that your application is processed. For full details of the SMSF Setup Process which includes the SMSF Broker Account establishment click here.
By using the Commsec Account, ESUPERFUND is able to electronically access the trades made by your SMSF in order to attend to the SMSF Annual Compliance Requirements. That is at the end of each financial year, CommSec will send ESUPERFUND an annual data file of all your SMSF trades. This enables our office to attend to your SMSF's annual compliance obligations. No Broker records are required from you each year as we already have access to the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your Broker data and cannot actually login to your Broker Account to access the required data.
The Brokerage Rates for CommSec can be found here.
Your SMSF is the Owner
All Shares purchased by your SMSF are CHESS Sponsored and owned in the name of your SMSF under its unique HIN. This is a very important point and gives you total peace of mind that your SMSF is the direct owner of all Shares purchased. ESUPERFUND does not own any of your SMSF Shares. So in the very unlikely event ESUPERFUND ceases to operate or becomes insolvent all your SMSF Assets including Share Holdings are protected and secure because your SMSF is the direct owner of the Shares.
Only you have Trading Access
Importantly ESUPERFUND has absolutely no ability to enter or transact on CommSec Trading Platform. Only you as the SMSF Trustee can login and transact on the Broker Platforms.
Accessing Information by ESUPERFUND
At the end of each financial year, CommSec will send ESUPERFUND an annual data file of all your SMSF Trades and Transactions. This enables our office to attend to your SMSF's annual compliance obligations. No records are required from you each year as we already have access to the data. It is important to understand that only electronic data files are provided to ESUPERFUND. As detailed above we have absolutely no access to your Trading Platform and cannot actually login to your Trading Account to access the required data.
No obligation to invest in Shares
It is important to understand that the Investment decisions for your SMSF always remain with you as the SMSF Trustee giving you total control of your SMSF. You are under no obligation to invest in Shares if you elect not to do so. The CommSec Trading Platform is established for you to be used only if you want to invest in Australian Shares. It is completely permissible never to invest in Shares for your SMSF if you do not want to and this in no way affects your annual fee.
Straight Through Processing
All Trades executed by ESUPERFUND clients through the CommSec Trading Platform is executed using Straight Through Processing (STP). Straight Through Processing is where your order is sent directly to the ASX Market, without any human intervention. Some online broker use a system whereby your order is sent to a dealer who then has to approve or reject it and manually enter it into the market. Obviously in times of market turbulence, this could cause significant delays in getting the order on the market. The CommSec Trading Platform approves or rejects the order and places it directly on the market.
Avoid Audit Issues
One of the most common errors identified by the ATO is the establishment of Broker Accounts in the Trustees personal name and not in the name the SMSF, resulting in ATO compliance issues. By establishing the Broker Account for your SMSF as part of the SMSF Setup process we ensure that the Broker Account is setup correctly. This ensures that ATO compliance issues and associated penalties are eliminated and that all Broker Accounts setup by ESUPERFUND are compliant with Super Regulations.
ESUPERFUND provides No Investment Advice
ESUPERFUND does not provide Investment Advice and cannot advise you on which Shares to purchase or sell in your SMSF. You as the SMSF Trustee are responsible for making all Trading decisions for your SMSF, based on your SMSF's particular financial situation and needs.
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 Share 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 Share 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 Share Trading Account before making any decision about whether the Commsec Share 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 Share Trading Account for your SMSF.
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