Derivatives investments in an SMSF
Derivatives are financial contracts where the value is derived from an underlying asset, such as shares, currencies, commodities or market indices. Common types include:
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Options (e.g., call/put options)
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Futures
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Contracts for Difference (CFDs)
Derivatives are typically used for hedging, risk management or generating additional income.
To invest in derivatives, your SMSF Trust Deed and Investment Strategy must explicitly allow derivative investments. These documents should be reviewed and updated where necessary before any trading begins.
The use of derivatives is allowed under Regulation 13.15A of the Superannuation Industry (Supervision) Regulations 1994.
Derivative Risk Statement (DRS)
If a written Derivative Risk Statement is required to be prepared by your Trust Deed, outlining the purpose, risks, controls and Trustee understanding of derivative use, a template can be downloaded from here:
Download Derivative Risk Statement Template
Guidance on investment types can be found here.
