subscribe to our newsletter

Rise in advisers falling into SMSF insurance trap

Miranda Brownlee
10 October 2016 — 1 minute read

Many SMSF professionals are unknowingly giving unlicensed advice on insurance by providing clients with pre-filled documentation from their accounting software, warns an SMSF auditor.

Tactical Super director Deanne Firth says a large number of accountants are generating automated investment strategies from their accounting software that contain clauses specifying that the client has considered insurance without the client deciding for themselves.

“I worry about this because they’re not licensed to give that advice and they’re printing them out from their accounting software program,” Ms Firth said.


“The trustee isn’t actually preparing the investment strategy themselves which puts the accountant at risk of the ASIC breaching licensing provisions.”

Despite the requirement for SMSF trustees to consider the insurance needs of members, Ms Firth said many trustees and practitioners are failing to adequately address the matter.

“Trustees are just signing a clause saying ‘we’ve reviewed our insurance’. I don’t see evidence of people actually taking it seriously,” she said.

“Insurance does actually need to be reviewed annually. It’s not something you set and forget, because it does change, and it does change according to your circumstances.”

The warning has surfaced at a time when the regulators are being tipped to come down hard on the insurance industry broadly, particularly following its investigation into the sale of add-on insurance. 

Miranda Brownlee

Miranda Brownlee


Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years. 

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Rise in advisers falling into SMSF insurance trap
smsfadviser logo
join the discussion

Latest poll

Do your clients plan to add additional members to their SMSF if the new six member limit is passed as law?


Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.