Join our investing community

SMSF, how to achieve segregation?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by netd, 21st Jun, 2012.

  1. netd

    netd Member

    Joined:
    15th Jun, 2012
    Posts:
    12
    Location:
    Sydney, NSW
    Hi,
    I intend to start an account based pension and have it's funds segregated.
    The segregated funds include shares and a separate UBank bank account.
    When shares are traded with Commsec the funds are settled through the Commsec cash account.
    It is possible segregated pension funds will be held in the Commsec cash account at the same time as accumulation account funds.
    Would the ATO regard the funds as no longer being sgregated and require an Actuary’s certificate?
    How is segregation normally achieved when using Commsec share trading?

    Thanks,
    netd
     
  2. netd

    netd Member

    Joined:
    15th Jun, 2012
    Posts:
    12
    Location:
    Sydney, NSW
    After some looking around online I have found the answer to my first question;
    Yes, because the account will hold segregated funds and accumulation account funds it will require an Actuary’s certificate.

    It seems the simplest answer will be to trade the segregated funds with CommSec and the accumulation funds with another broker.

    Can anyone recommend a cheep online broker?
     
  3. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Hi Netd,

    Happy you found the answer to your segregation question. Just make sure you nominate the correct account for dividend payments!

    Canstar does annual online broker research here:
    http://www.canstar.com.au/images/star_ratings_reports/online-share-trading-apr-2012.pdf PDF

    Even though CMC Markets wins the overall award, you will notice the Bell Direct features highly in all categories.

    I see hundreds of SMSF accounts every year, Commsec is by far the most popular, and it is relatively user friendly.

    Personally, I have recently switched to Bell Direct and have found it excellent - easy to set up for my SMSF, great customer service and pretty cheap brokerage ($15 trades).

    Interestingly, being based in Queensland, many of my clients use BOQ and Suncorp for their SMSF accounts. CMC provides a re-branded share trading platform to both BOQ and Suncorp, however less than 1% actually use CMC for their shares.

    Any questions please let me know.

    SM :)