Derivatives Risk Statement and Reserve Strategy

Superannuation & SMSF StrategyUnder some circumstances the SIS Act and Regulations require a SMSF to have strategies other that the Investment Strategy, including a Derivatives Risk Statement and a Reserve Strategy:


SIS regulation 13.14 prohibits SMSFs from allowing charges to be created over fund assets, however as this is Superannuation there are a number of exceptions. The one of interest to this discussion is contained in regulation 13.15A. Broadly, this regulation allows a charge to be created over fund assets in relations to a derivatives contract, however there are a number of requirements. Read more...