‘Read the tea leaves,’ brace for cryptocurrency regulation, advisers told

Despite crytpocurrency not being regulated as a financial product, the requisites of best interests duty still strictly apply as the regulators circle, advisers are being told. 

           

 

Some information about SMSFs, cryptocurrency and compliance. 

As reported earlier this month, SMSF professionals are seeing a notable rise in interest and investment around cryptocurrencies, even with traditionally conservative clients.   You can read more about the obligations for financial advisers when discussing cryptocurrency with clients here.

Compliance consultants Assured Support are encouraging financial advisers to proceed with caution, and be particularly wary of their professional obligations when advising on cryptocurrency despite the loose regulatory framework around options like bitcoin and ethereum.

“If you’re an adviser who doesn’t want to recommend cryptocurrencies but your client comes and asks you to include them in the portfolio, then you have a best interests duty to address that,” Assured Support principal Sean Graham told sister publication ifa.

“There are some advisers saying they can recommend it because it’s not a financial product, well, it may be in some circumstances and if you read the tea leaves, it’s going to be more highly regulated in the future,” he added.

From a compliance perspective, cryptocurrency can be held in an SMSF, but there are a range of compliance considerations, which you can read more about here

 

By: Killian Plastow and Katarina Taurian
​30 JANUARY 2018
www.smsfadviser.com

 

Centra Wealth Group
Take The Next Step, Book an Appointment
Contact Us

Zac Zacharia (Managing Director) has been assisting clients to create wealth and secure their futures for over 14 years.

He is also an accomplished presenter and educator

Co-authoring the popular investment book, Property vs Shares.