Insurance advice given to self-managed super fund (SMSF) investors is often inadequate, according to a report by the Australian Securities and Investments Commission (ASIC).

The finding follows a review of more than 100 investor files provided by financial planners and accountants relating to setting up SMSFs, most with a balance of $150,000 or less.

Although most help was “adequate”, there were “concerning pockets of poor advice”.

Insurance recommendations were rated as poor; they were inadequate, inappropriate or absent, ASIC says.

In some cases insurance needs were discussed only after an SMSF had been established. Over-insurance was a problem in some files.

The report – SMSFs: Improving the Quality of Advice Given to Investors – marks the first major project by the regulator’s SMSF taskforce, which was established last year.