Listed below are Investments Disallowed under the ESUPERFUND Platform:
Clients of ESUPERFUND are not allowed to invest in Private Companies or Private Trusts that are not listed on the ASX. The rationale for disallowing these Investments is that the underlying Company or Trust that the SMSF invests in must be "effectively audited" by ESUPERFUND to ensure that the SMSF has not indirectly breached Super Laws via these related entities. This is outside the scope of our offering.
|
Clients of ESUPERFUND are not allowed to lend money from their SMSF to any person or entity irrespective of whether the loan is on commercial terms. In most cases lending money from an SMSF to an SMSF Member (or an associate of an SMSF Member by blood or marriage) or to an entity associated with an SMSF Member may result in the Fund being deemed non-complying. Determining if the loan is within or outside the Super laws, whether the Loan is to an SMSF Member or an associate of an SMSF member (which is complex to determine), whether loan agreements exist and if they do reviewing these loan agreements and determining if the terms are being adhered to and do not contravene Super laws is a difficult and time consuming process. This added level of complexity is outside the scope of our offering.
|
Clients of ESUPERFUND are not allowed to invest in Collectables or Personal-use Assets unless the Collectables are Physical Metals.
The definition of Collectables and Personal-use Assets includes jewellery, artwork, antiques, artefacts, wine or spirits, motor vehicles and motorcycles, coins and medallions etc.
A full definition can be found on the ATO website here.
The rationale for disallowing these Investments is that there are onerous rules accompanying investing in Collectables, including the assets cannot be stored in the private residence of the Member or an associate of the Member, must not be available for the private use or benefit of the Trustees or related parties and must be insured in the name of the SMSF within 7 days of the assets being acquired.
Determining whether the asset is used by an SMSF Member or an associate of an SMSF member (which is complex to determine), whether the SMSF complies with all the other Investment rules and restrictions is a difficult and time consuming process.
This added level of complexity is outside the scope of our offering.
|
What happens if your SMSF invests in a Disallowed Investment?
ESUPERFUND will not be able to act for clients who invest in any asset that is not listed as an Allowable Investment. Unfortunately if you are a client of ESUPERFUND and subsequently invest in any asset that is not listed as an Allowable Investment, then ESUPERFUND reserves the right to immediately cease acting for your SMSF in which case you will need to find a new accountant to act for your SMSF.