Mr Zelwer said advice businesses focused solely on SMSFs are “dangerous” for the industry, if every client walking through the door sets up an SMSF whether appropriate or not.

“I get very concerned about the growth of groups out there masquerading as financial advisers but all they do is set up self-managed funds, and help clients buy property off-the-plan, and arrange limited recourse borrowing,” he said.

At some point in the future Mr Zelwer said “this will come back to bite the industry”.

While SMSF investment in property he said is only growing fiercely in very small pockets of the industry, clients that do have these sorts of strategies will see a “real soft spot going forward”.

Mr Zelwer said anything that has grown at the rate of what SMSFs have is likely to be a target for regulation and that the SMSF industry should be prepared for that.

“It looks like there’s a very good change, limited recourse borrowing is going to be taken away,” he said.

“The ATO obviously now has some more administrative powers in dealing with SMSFs so the question is going to be how they enforce that and if they have the manpower to enforce it,” he added.