Hot topic of the week...

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An article which many of you identified with was ‘Adviser hits back at ISA’, where Melinda Houghton spoke out about three of her clients’ struggles with squeezing life insurance and super pay-outs from industry super funds.

Her story attracted a high level of support, with advisers congratulating Houghton for sharing her experience.

John said: “Well done [Melinda] for having the guts to say it as it is, many of us have similar stories to tell, perhaps that should be a focus for professional adviser associations in that they should canvass their members and encourage their members put all their cases out there!”

Likewise, Wally “100%” agreed with Houghton. “ISN are running a propaganda war and would happily see the public receive no advice because it means more passive money remains in their funds. They have one interest and that is to fund their political ideology. You get what you pay for and industry fund service levels are mediocre at best.” 

Examples such as these should be publicised more often, CY said. “What could destroy a consumer's confidence more than the examples that Melinda Houghton has highlighted? I bet the ISA don't want to advertise these examples...but perhaps they could publish Melinda's examples on their "unbiased" online news feed, The New Daily, for all their members to take in and to independently make their own decisions about?”

Many advisers said they would not recommend clients take out industry super fund cover because of the hassle, like Karyn Hilton. “These types of issues tarnish our industry and don’t encourage Australians to seek advice and take out cover.”

A minority of commentators gave support to the industry super funds. Chris said: These three examples are terrible, but hardly damning of the entire Industry Super sector…Storm Financial was an independently licensed financial advice business...does its failure mean all IFA's are crooks?”

And Rod said: “The last time I read such self-deluding and misinformed material was reading the membership application for the American Rifle Association.” 

Read the article and more comments here.