ATO Ruling on CFD for Self Managed Super Funds
Posted on May 25, 2007
Filed Under CFD Trading
ATO has released a ruling on use of CFDs for SMSF. The ruling basically allows the use CFDs in a SMSF for hedging pruposes.
Although the SIS Regulations specifically disallows SMSF from taking a loan (eg margin loan) a CFD is considered to be a contract between a CFD provider and investor to make contractual payments rather than repayments.
Additionally as long as no charge is made against the assets of the fund the use of CFD is permitted. The cash held in a CFD bank account is not considered a charge against the asset of the fund.
Interesting decision indeed.
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID200756/00001
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