In a blog, PFM Australia and Alliton Capital founder Barry Daniels said the mental health distress brought about by industry reform fatigue, constant legislative/regulatory changes and reputational damage of financial services is the unintended consequence that is contributing to many advice practitioners deciding to terminate their careers and exit the advisory sector.
The former adviser said all these factors have come together into a perfect storm scenario and many once resilient individuals are simply unable to cope – and this is being manifested in mental health issues.
Mr Daniels said it’s imperative that planners that find themselves unable to cope or struggling emotionally – not to do so in silence or alone.
“It’s important for those planners that are finding it difficult to manage, that they obtain help as soon as possible. Taking the first step can be daunting, but there are many health professionals, community groups and organisations that can help,” Mr Daniels said.
“Many planners will be reluctant to reach out for help, fearful of being told they have a mental illness. This fear, misunderstanding and reluctance to reach out will only delay treatment and access to support.
“The deeper concern is the dark side of all this industry reform, which in its wake is a legacy of distressed planners with mental health issues.”
Mr Daniels’ comments come as both the AFA and the FPA have recently launched mental health initiatives aimed at advisers who are struggling with adjusting to the industry changes.
“We’re encouraging members to prioritise their wellbeing and reach out if they need more support to navigate the changes affecting all of us in different ways,” said FPA chief executive Dante De Gori.
At an AFA Roadshow event in Sydney this week, AFA chief executive Philip Kewin announced the launch of its AFA Care service.
“If you know people who are doing it tough, ask them to talk to somebody. AFA Care is just one of those sources,” Mr Kewin said.
If you are suffering from depression, anxiety or suicidal thoughts, or you’re worried about someone else and feel that urgent professional support is needed, FPA members can access its FPA Wellbeing service by logging onto its Member Centre website. AFA members can access AFA Care by calling 1300 360 364. Alternatively, you can also contact your local doctor or one of the 24/7 crisis agencies below.
Lifeline: 13 11 14
www.lifeline.org.au
Suicide Call Back Service: 1300 659 467
www.suicidecallbackservice.org.au
beyondblue: 1300 22 4636
www.beyondblue.org.au
This is the real factor that always gets overlooked by the Government and the Regulators. I’m still completely at a loss to understand why this human factor has not been communicated to the Government by our weak industry bodies and advisers as well. It seems everybody has just rolled over which has sent a message to Canberra that what they have done is effectively the answer! A large part of my stress is the uncertainty created by the shambles that is FASEA. I have already done a great deal of study over the 20 years I have worked as an adviser and I’m very to continue to do so if meaningful, but the thought of sitting an exam which determines my fate is a daunting prospect for many that I have spoken to, even advisers of higher educational and professional standing than myself! The only thing the exam will test is whether or not you are competent to sit a 3.5 hour computer based exam under the pressure of knowing you have a limited timeframe to pass before your career as an adviser is over. Time to speak up as an advice community!
One wonders whether Josh Frydenburg gives any thought at all to the devastating personal consequences of changing retrospective legislation in the pursuit of political perception.
This is a terrible situation, however, a more unintended consequence of this debacle is the potential increase in Income Protection and TPD claims under mental health. I am sure the RC will be cited as the major cause of this…..
Tragic news. Money Management magazine is reporting that there has been in excess of 12 suicides so far by advisers. The mental toll on financial advisers during this period of unprecedented and relentless change cannot be overstated.
Personally, I have had to seek ongoing medical help including medication and counselling for an extended period of time due to the stress, anxiety and depression I now suffer from working in a business I love but now after 30+ years I struggle with. Advisers shouldn’t be treated this way.
More disturbing is the 4 other advisers I know who are in similar situations and have discussed these issues with me. All of these advisers may not be in this industry in 2 to 4 years due to these issues with multiple advisers already looking for new careers. How many advisers are suffering silently? This is verging on an epidemic!!
The lack of regard by the government for the mental health of advisers especially those that have borrowed or put their house on the line to grow their businesses or are just close to retirement, is appalling and short-sighted. Between LIF, FASEA, the removal of Grandfathered trails, falling register values and massively increased compliance I would be surprised if more than 30-40% of current advisers will still be in the industry in 5 years.
The ACCC now has power to stop big businesses hammering small suppliers. Our problem is that our mates ( the Coalition) imposed a legal price paying cartel on us ( LIF) . ACCC are powerless. Advisers took the line that Mr Shorten would have been worse – not exactly sure how- revenue is not FASEA or ASIC compliance load!
No ones like uncertainty. We have been clouded with uncertainty for a long time. Then when we are given more certainty it is hard not to feel that some legislative and business decisions have hinden agendas which only hurt us advisers. I’ll put my hand up and say I have had to seek help, I am now most certainly stuck with my existing insurance provider but can’t say enough how important it is that if you are also struggling make sure you seek help. It was hard to identify the spiral I was in last year and without help would be in a different position no doubt.
I’m 50 yrs old, self employed adviser with 24yrs experience and I started anti depression medication in February this year….. after consulting my GP a number of times about the stress i was under at work and also the impact it was having at home. I think a lot of people are focusing on only the work aspect, but these changes are having a very big impact on home life for many advisers as well. I implore any adviser, if you’re struggling seek professional advice and help. You may not need medication, just a chat, but do seek advice and support please.
I have been advocating this for a long time now. However there is no point patting someone on the head telling them it is ok when they are still being bashed around the head with all the changes. When your entire livelihood is under threat no amount of support fixes that unless it is an across the industry mechanism – regulators, professional bodies,politicians and the practitioners themselves working together rather than continually bashing the people this is severely impacting. Australian is a democracy not a communist state – so lets start working together to prove it is a democracy.
I have been in the industry for 15 years and had a mental breakdown through last year. I spent two weeks in hospital but still suffer from anxiety as a result of all of the change that has occurred and the lack of clarity provided to us as the change continues to occur.
I waited too long to reach out but it was the best thing that I ever did, I now have professional support and just as importantly peer support from others in the industry. While I am still working through it, having support has made a massive difference and I am sure that I will weather the storm as a result. I am glad that these articles are getting attention as it is a massive problem and the people that are going through tough times need to know that they are not alone or less of a person or adviser because they are going through a tough time.
Why do taxi plate owners who get compensation, with levies applied to all taxi & ride-sharing trips, yet advisers who acted & made decisions based on government legislation will just get hung out to dry…..???
What we need is the mobilisation of affected Advisers AND your clients…my question to you all is if you were sent a link to an online petition how many of your clients would sign it on your behalf asking for more reasonable progress towards professional standards? Until YOUR clients add their voice as tax paying voters, then the FPA and AFA on their own just won’t cut it. I am proposing exactly this on behalf of all hard working and already professionally operative Advisers and your clients…enough is enough…if no one will do this on our behalf then we need to do it ourselves because together as a collective we can have a voice and stand up for better treatment. The alternative is to die quietly…if you support this then add your approval below and lets get it happening!
There has already been a number of lives lost as a result of the poorly managed process of change. The lives lost are the ones who truly cared for their clients, and became hamstrung by bureaucratic red tape. It is just really sad.
Advisers are the source of solutions for financial and life long journeys. having said that, we as advisers sometimes need advisers ourselves. Consider having ”peer group meetings ” in your local area and discuss problems and solutions. This is a tried and proven solution with very positive outcomes to help us move on and improve and surprisingly, find solutions to the root cause of the issues. Give it a go and help ourselves.
I was going to go on a rant about this topic but what’s the point. It’s blatantly clear from the way advisers have been treated by ASIC’s compliance ill-informed socialist nuffies, the Government and ex-MP’s, industry bodies such as the FSC, FPA and AFA and the insurance companies the last 4-5 years, that no one cares what happens to advisers.
So what’s the point anymore….I’m out!
I have been in the industry for over 20+ years. This is the lowest that the industry has ever been at. I have suffered depression and anxiety and know many others that have also. It really makes me sad how we are being treated. At what point do we all stop and take notice? Will it take for planners to go broke, lose their homes or for them to take their own life for anyone to notice.
The entire reform process has been handled in a very clumsy ham fisted way. To be honest its quite disgraceful. I am sure that a much more measured and considered way forward could still be achieved but the window to adjust time frames and work with the industry is closing. Government needs to take a more active approach – so far it has been a disaster and I foresee a lot more trouble ahead unless something changes.
advisers are reluctant to reach out for help because they are always expected to come up with the solutions and be leaders, not the recipient of help and be lead.
I really hope the likes of the AFA/FPA are also using these articles and cases to take to the govt of the damage they have caused with their knee jerk reaction legislation and unintended consequences they have created. It is also time the AFA/FPA stop just “agreeing” with everything the govt does, and start acting in the interests of their members