The health impact of the RC on advisers
Some 80% of advisers say their stress levels has “significantly increased” since the Royal Commission, causing marriage breaks-up, long working hours and depression.
In a survey by financial adviser Phillipa Hunt and Forte Asset Solutions of 693 respondents, it found 95% said their stress levels had slightly or significantly increased while just 2% said it had slightly or significantly decreased.
Some 87% said their mental health had significantly or slightly declined, 73% said the same about their physical health and 70% said their sleep was suffering.
Over half said they were drinking more to cope and, of those, 39% said their intake had significantly increased. Some 10% said they were taking non-medicated drugs, primarily sleeping tablets.
Some 18% said they were on medication compared to 7% prior to the Royal Commission and more than 20% said they had entertained thoughts of self-harm.
However, respondents were actively seeking to address this as 78% said they had taken personal steps to improve their mental health and 37% had consulted a doctor with 18% being prescribed medication for the problem. Some 7% had contacted a support network such as Lifeline or Beyond Blue.
The report said: “The answers of the survey show up that this was a plea for help. The overwhelming responses in the survey show advisers love their work that helps their clients reach a better place in their life. However, with the imposition of overreaching legislation and regulation has caused advisers such overwhelm and stress simply doing their job.
“However, there are a number of advisers who are intending to stay, and they don’t have low base clients. All of the clients in the industry will now move further to the upper end of the high-net-worth clients who can afford to pay fees and those advisers won’t be feeling the stress of trying to make ends meet with higher costs of the business and having to charge clients more.
“The fact that the industry has been brought to this point, and even if those distressed advisers leave, they’ll end up being mentally and emotionally burnt out and this is actually forcing them out. And this is one of the most heartbreaking aspects of the whole survey and its results.”
If you are affected by any issues in this story, contact Lifeline on 13 11 44 or Beyond Blue on 1300 22 4636.
AUTHOR
Laura Dew
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
