While the legislation and regulations around advice are an important part of this, Mr Hay-Bartlem explained there are a whole range of other practical considerations including PI insurance.

SMSF professionals, he said, should be carefully checking what is covered under their PI insurance as there may be certain types of advice excluded.

“I had a client who was previously an accountant and became a financial planner. As a financial planner he gave small business CGT concession advice and got it wrong and then got sued,” he explained.

“Now if he had done it as the accountant he used to be, his PI insurance would have covered him but he was now a financial planner, so his financial planner PI insurance was not going to cover him for small business CGT advice.”

Advisors and accountants, he said, should be reading their policy to find out what it covers and what is excluded.

“When was the last time you looked up your insurance conditions?” he questioned.

“It turns out it could be really important to know what’s in and what’s out. Get your insurance broker to explain it.”

Mr Hay-Bartlem also highlighted the importance of advisers reading the agreement they have with their AFS licensee.

“If you’re a representative, what does your agreement say? I can tell you there are a range of very different agreements,” he stated.

“I can tell you that I haven’t see one yet where the representative doesn’t indemnify the dealer against anything the representative gets pinned for.

“I’ve seen AFSL holders enforcing those kinds of indemnities against representatives who stray too far.”