One of the reports indicated that in 19 per cent of cases, clients were at an increased risk of financial detriment due to a lack of diversification.

It also flagged concerns about people being encouraged to set up an SMSF to invest in property and the growing use of property one-stop-shops.

Monex Securities Australia managing director Alex Douglas said if it "becomes harder for SMSF trustees to invest in property, then we expect to see more SMSF managers seeking opportunities for investment in international share markets".

Speaking to SMSF Adviser, Mr Douglas said both the reports pointed to  lack of awareness about the whole concept of diversification.

"The report uncovered that SMSFs have a generally poor understanding of the need for diversification and even what diversification is," he said.

However, the increased scrutiny from ASIC, he said, has seen SMSF professionals and trustees shift their focus on international equities and other asset classes outside of Australian equities and property. 

"People providing advice to SMSF trustees are expecting to see more scrutiny from ASIC, and know they're expected to give more balanced advice and to point out the risks of putting all of your assets into one asset class," he said.

"So I think we'll see them increasingly advising trustees of the other opportunities that exist out there." 

.