New Brighton Capital Supported Providers
New Brighton Capital has supported providers for clients who choose to include listed shares and/ or cryptocurrency in their SMSF’s investment strategy. 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 for the fund to discharge its liabilities. A licensed financial adviser can assist you in formulating your investment strategy.
Please note: Information on this website is designed to be factual in nature and is not intended to imply any recommendation or opinion or to influence you in making a decision in relation to a financial product, other than for compliance purposes. Supported providers are not necessarily a legal requirement for your SMSF, they are however, providers that you need to stick to if you wish to be a client of New Brighton Capital and be exposed to certain asset classes. Being listed as a supported provider is in no way a recommendation or endorsement by New Brighton Capital of the provider or the assets available on the supported provider’s platform. Supported providers are simply providers that have demonstrated to New Brighton Capital that reporting and data feed systems are compatible with New Brighton Capital, their partner’s and auditor’s requirements. If you transact on unsupported platforms, New Brighton Capital may elect to not complete your tax return and you will need to find another administrator for your SMSF. If you do transact on unsupported platforms and New Brighton Capital does complete your tax return, additional fees will apply. So please ensure you keep all activity on supported providers if you intend on including shares and/or cryptocurrency in your SMSF’s investment strategy and if you are unsure please contact us and we will be happy to assist.
Share market supported providers
Cryptocurrency supported providers
If investing in cryptocurrency, please ensure you read and understand the “Important Information If Investing In Cryptocurrency” below.
Important Information If Investing In Cryptocurrency
You are permitted to keep coins on the exchange or transfer coins to a wallet where you control the private keys. Best practice is to transfer coins off exchanges to wallets where you control the private keys. This is because cryptocurrency exchanges, generally do not have their deposits insured like banks do. So if the exchange becomes insolvent, you are at risk of losing anything held on the exchange. SMSF holdings still need to be kept separate from personal holdings. At tax time you will need to share the public addresses with us so we can match your transactions on the blockchain.
Please note: You cannot trade / swap within your own wallets. All purchases and trade are required to take place on the supported exchanges.
Privacy coins must be kept on the exchange at all times. You are permitted to purchase privacy coins (such as Monero, Dash and Zcash) on supported exchanges but they must be kept on the exchange at all times. You must not move privacy coins off the exchange at any time. This is because the auditors are unable to verify the location of the coins once off the exchange. Moving privacy coins off the exchange might attract a fine and a contravention lodged against your SMSF.
Trading SMSF funds on decentralised platforms is not allowed. This is a directive from the auditors who have advised they will contravene SMSFs that invest through decentralised exchanges. (ie report to the ATO that your fund is not investing in line with the legislated requirements)
This is because decentralised platforms cannot provide reporting to show that the trade was made in the name of the SMSF. As a result of a contravention report the ATO may issue penalty or deregister your fund and you may have to shut down your SMSF.
NFT’s – Not Permitted
Unlike cryptocurrency, there are no NFT price checkers available online to confirm their value. The market value of assets held by an SMSF at June 30 is a requirement but determining the value of NFTs is unable to be completed to the satisfactory of the auditor’s requirements at present. All assets held by an SMSF need to meet auditors professional obligations under R8.02B of the SIS Act. Holding assets which cannot be valued to the auditor’s requirements will result in a Part A qualification of the audit report and may also be a breach of R8.02B SISR.
Staking is permitted within an SMSF. Clients of New Brighton Capital are allowed to stake any coin as long as it is purchased through a supported exchange. The transactions will not count towards your annual transaction limit. Staking on supported exchanges is free. However, if staked off-exchange (in a wallet), there will be an additional fee of $55 per asset, per year per staking pool/destination. This is to cover the additional accounting required. For off-exchange staking, we also require a downloadable report (excel or CSV format) of the staking rewards earned during the financial year.
Yield Farming – Not Permitted
An SMSF is not permitted to yield farm. Yield farming involves borrowing which is not allowed within an SMSF.
Investing in ICO’s
It is a New Brighton Capital requirement that cryptocurrency be only purchased on supported providers, so unless the ICO is listed on a supported exchange, unfortunately you cannot purchase it until it listed on a supported exchange. Note: this is not a legal requirement but a requirement for the time being if you wish be a client of New Brighton Capital.