Speaking on the sidelines of the Institute of Public Accountants Deakin Small Business: Big Vision conference in Melbourne last week, Deakin’s Professor Andrew Noblet, who heads the research into workplace mental health, said that while he can’t point to any research, there is an apparent increase in the levels of stress in financial services.
Professor Noblet explained that anyone facing a high demand situation, like the one that has got financial advisers calling time on their careers, is going to struggle.
“You put anyone in a high demand situation, where there is limited resources to be able to deal with those demands, and people are going to struggle,” he said.
“There might be individuals who because of their personalities, because of their makeup, are able to get by, but for a lot of people if you’re exposed to those sorts of situations week after week, month after month, year after year, it is going to be difficult.”
Professor Noblet noted that research into this problem needs to be prioritised.
“We haven’t done research ourselves but we certainly need to,” he said.
Last month, ifa editor James Mitchell broke the news that 16 financial advisers have taken their own lives so far this year, following the seismic reforms that have disrupting the financial advice sector.
Professor Noblet underlined that accountants too are struggling, particularly due to the changing nature of accounting services, which is seeing them transition into an advisory role.
“It’s not just about the number of hours we do, it’s also the complexity of the work that we perform during those hours,” he said.
“What we’re seeing, just by the changing nature of accounting services, is that the complexity is increasing. And whilst that is in many ways good, certainly good for small businesses who are looking for a greater breadth in services, from a cognitive perspective it makes it more challenging.”
Professor Noblet cautioned that directors of financial service firms need to be aware and on top of the sorts of demands and pressures that their staff are experiencing.
The biggest toll on advisers’ mental health is not caused by resourcing or industry transformation issues.
It is the constant, indiscriminate attacks on their integrity. It is the public vilification by the media and the government, that portrays all advisers as criminals who must be punished. For most advisers, who actually spend the bulk of their time helping to improve the lives of others, this is a massive kick in the guts. It totally undermines their sense of self worth and their belief in a civilised society. It makes a lot of advisers ask the question “why bother”?
My office has had a meeting with our Federal member, the net result is that he reckons we need to have our associations engage more heavily and actively with government, however it strikes me that A: Government doesn’t really care or want engagement, they have a populist agenda and that means votes. B: down the track when it all ends in tears (as we all know it will) they will then quietly return to what we know works and things will settle down. Until then we need to hold our nerve and ensure we rise to the occasion and beat them, not an easy task, but a necessary one.
The CEO of the FPA still has his job…. still getting payments from AMP and their ilk “to help shape the direction of financial advice in Australia. ” Just how is that relationship working out for you? You can’t just sit there and do nothing and moan about Government intervening by over regulation. What’s just one thing within your control? Get off your butt, send an email to the FPA and tell them to stop getting payments from product manufacturers and show some real conflict free leadership and start acting solely for Australians and Financial Planners. Once we have a voice that solely represents planners and Australians(that’s called self regulation) Treasury will start listening and we can move forward united.
Dear policymakers,
Did you know – most of the cost of advice is for the adviser to prepare a file ready to brace themselves for a compliant from AFCA?
Compare this with what the ASIC Act requires you to do:
* maintain, facilitate and improve the performance of the financial system and entities in it
* promote confident and informed participation by investors and consumers in the financial system
* administer the law effectively and with minimal procedural requirements
The recent REP 679 shows 75% of Australians think you have failed.
Can someone explain to me what is a more stable utility-like environment. According to Google “utility” is defined as being:
(1) the state of being useful, profitable, or beneficial.
(2) an organization supplying the community with electricity, gas, water, or sewerage.
I can talk s..t but I don’t supply it so I’m guessing that rules out (2). I’m not profitable anymore so that also rules out (1) and I am also less useful and beneficial as I have increased my minimum fees which means I am turning away the people who most need the advice.
What we are seeing is that from a legislative standpoint, the financial services industry is transitioning from an enterpreneurial environment, to a more stable, utility-like environment.
we are only human – can only take so much – when will people actually listen and understand what is really going on
Very sad. It’s not too late for Gov Bodies to reconsider the level of force and fierce timing of the imposed changes
4 pink batts installers died which triggered a Royal Commission. 16 Fin Advisers have died at their own hands and neither ASIC nor the Government give a stuff. Think we can all envisage how nasty these markets are going to turn at some point and the need for someone to hold investors hands will be critical. Problem is when the clients come knocking at the door, there wont be anyone there who wants to open it. What FOFA and The Banking Royal Commission have done to the advice industry and in turn to retail clients is absolutely shameful.