Phil Kewin, chief executive of the Association of Financial Advisers, said that advisers are suffering under the weight of regulatory reform and feel as though they are no longer in control of their lives.
“I’ve never, in 30-plus years, experienced the heightened level of stress that I’ve seen amongst the financial adviser community,” Mr Kewin told the standing committee on economics.
“A lot of it is because their future has been taken and control has been taken out of their hands.
“A lot of small business operators want to control their own future and they feel at the moment they’re not sure that they actually can control their own future.”
In 2019, ifa reported that 16 financial advisers had taken their lives due to the psychological toll of issues stemming from the massive reforms that the industry was undergoing. Mr Kewin is only aware of one member of the AFA that has taken their life, but said “that’s one too many”.
“That’s a very personal and complicated issue,” Mr Kewin said. “There are many factors that come into that, but certainly in terms of the financial adviser community there’s a heightened state of anxiety. Our counselling services are there – they’re not utilised enough, which is unfortunate, but we are concerned about many people’s future.”
FPA CEO Dante De Gori echoed the point, saying that levels of anxiety and concern had “definitely escalated”.
“It’s been a combination of factors from both legislation and environment that have caused that and there are indeed definitely members and financial planners out there who are struggling and have taken action in terms of leaving the profession, to take time off from the profession, to seek professional help,” Mr De Gori said.
“And we have heard of situations in which people have really needed crisis support, in respect to mental health.”
Both associations have member help lines that points advisers towards professionally trained counsellors and psychologists. If this story has raised any emotional or psychological issues for you, you can utilise the below resources:
Lifeline, 13 11 14, www.lifeline.org.au
Suicide Call Back Service, 1300 659 467, www.suicidecallbackservice.org.au
MensLine Australia, 1300 78 99 78, www.mensline.org.au
I have only briefly been a member of the FPA or AFA. I did consider it when I first started in 2001 but they did little to impress me. I mean to say at the time, they were close to going broke and I thought as an adviser on financial matters, why would i want a professional body that could not handle their own finances. Later when seeking higher education I considered the CFP. The course was rubbish and the the exam a joke. Of course I had to become a member of FPA to use that designation. A designation that no-one in the general community know what it stood for. Subsequently, i decided to study for a Masters of FP. At least people know what that is and it is not contingent on club membership. Of course I was told how stupid and up myself I was for bothering with this. It was hard too, I had a family and business to run and it was early days after the GFC but I did it because I felt it was theright way to go. Well, how things have changed. I can’t help but think if more advisers had sought to move beyond the FPA/AFA bubble sooner, we may not all be in the position we are now.
I have done the exam and the additional subject on ethics (why I’ll never know, I did this during the masters). Part of the “stress and anxiety” comes from not taking action. Instead of sitting around hoping for extensions, I thought it was better to bite the bullet and get the job done. All while being audited to death by the “individuals” at AMP/Charter who I have now since left thank God. It’s not luck, its taking a case of making the decision and taking action. The alternative is sitting around worrying.
As soon as the mortgage brokers got wind of the fact that their commissions may be cut, their associations got on the front foot and made a difference. What has the FPA or AFA done for the Advisers? These associations remind me very much of AMP at the moment. They choose to comment about “understanding the difficulties Advisers are facing” and adding a footnote to all correspondence which says “if you’re stressed, seek help”. Absolute disgrace.
Watto, The FPA is not funded by members. It’s a body that represents large licensee’s and insto’s. Anyone that thinks the FPA is representing them please research the Professional Partner Program. You are 100% spot on stating it’s failed and these guys have blood on their hands. They’ve contributed to the death of these planners. You can’t sell out advisers and do a back room deal with CBA in return for compulsory membership and expect no repercussions or deaths. Advisers that support the FPA are supporting Government intervention and they’re just scum in my books. FPA members sold out their peers for a crappy CFP logo. Australians got un affordable advice, we got FASEA, and more red tape and both the FPA and AFA were winners getting the benefits of compulsory membership.
Lifeline, 13 11 14, http://www.lifeline.org.au
Suicide Call Back Service, 1300 659 467, http://www.suicidecallbackservice.org.au
MensLine Australia, 1300 78 99 78, http://www.mensline.org.au
So by putting this at the end of everything is your disclaimer to say you have done your part?
You lot should be ashamed of how little you have pushed to ASIC and the government how much damage they have caused and continuing to do. You give lip service but that is where it stops. [
Grow some balls.
hey – where is your close bracket?
COVID isn’t going anywhere. Economic destruction has only just begun. The adaptation phase has sort of begun but we really don’t know what we’re adapting to just yet. A good decision today, may well be the wrong one this afternoon such is the economy’s lack of experience with distress such as we are experiencing this morning…
For the first time in biblical history we have an economic event that is guaranteed to adversely effect both investment markets and the health of insurers and reinsurers. Clients are or will soon to be in very bad shape and advisers doing their very best to look after them are being chopped off at the knees by massive educational demands coupled with beyond bizarre consent from every client including risk clients that may have been purchased say in late 2019.
Brokerage turned off means even more consumers are alone at time of claim or when advice is much needed such as when insurers impose insurmountable premium hikes to cope with massive revenue losses.
Where does this cycle end? When we learn to live with COVID, if that is even possible? When we get global political leadership? haha Sadly more chance of a cure for COVID…
After 30 plus years as a member of the FPA and I had CFP status pre 2003 ,which no longer has any use due to FASEA,I asked to just become an ordinary member .The result is that the FPA regulations do not allow you to become an ordinary member so as of today I am no longer a member of the FPA.Hows that for looking after your members and mental well being.
Welcome to the beginnings of Professionalism. I applaud your move Tony.
Tony, the FPA in the past just signed deals with Banks and got hundreds of members in bulk. The future for the FPA is to sign up Industry Super Fund advisers and again get members in bulk. Any body that works like that is beholden to that larger entity and not the individual member. So the FPA is deeply conflicted. I also after 25 years let my membership lapse. We can’t keep doing the same thing and expecting the same result.
Absolutely true. Financial futures and plans are completely ruined. The regulators are quite happy to get into bed with various self-interest groups under the guise of “benefits to the consumer”. What a load of rot. However as all financial and risk advisers are criminals for having dared earn a living while (in most instances) providing very valuable, and sometimes life changing, advice to their clients. So ruining a few thousands of this of group of people’s financial life is small collateral damage to be perceived as doing the right thing by the public, where in a lot of the instances it’s actually the opposite.
If you want to write a book on how to systematically dismantle and ruin an industry, then this is the perfect case study.
I have handed my AR back, and bought a caravan and will work a 3 day week (when im around) and let the youngsters in my business deal with the BS
This is why we’re all leaving. The industry is going to be left with cold, hard, tired advisers by the end of all this. I know I’m not sticking around. Two weeks after deciding to leave I have secured a well paying job and already feel the darkness lifting on my life.
Good luck if you do decide to stay in it, I don’t know how you’re doing it!
I’ll tell you how. Instead of bitching and moaning, I get off my arse and do the study and pass the exam.
Here’s another article to pick-up and send to Senators and MP’s in Canberra – if enough do this they will need to do something to bring some sanity back to this industry. If not, they will be held responsible for the debacle it is turning in to.
The FPA may be funded by Advisers – but it is not an Adviser association – it doesn’t even have a member charter.
The FPA has failed as a representative body – and you couldn’t claim that it’s a consumer protection body either. Maybe it’s just become a mouthpiece for industry super funds like CBus where a cozy referral relationship exists, which looks conflicted in Adviser land.
With respect to mental health, I’d be keen to know what the FPA actually provides to members to assist them. What behaviours and standards does the FPA have in place when it interacts directly with Advisers – I’d suggest very little.
I am no longer a member of the FPA, however, they did at the time (prior to me leaving) have a free mental health program in place for FPA members. May be in place still, I am not sure. I did utilise the service a couple of times as I was treated ever so poorly by a major participant. Thought about doing “it” and that’s why I sought help. That may or may not answer your question. The FPA had lost its way over many years however there was an attempt I guess at helping. Thats the way I viewed it.
Dont get me wrong, its true, anxiety levels through the roof, stress increasing etc. BUT, what are the AFA and FPA actually doing? Writing a press release to the industry to state the obvious?
Be good if they would get on the front foot, and advocate the profession to the wider PUBLIC. Reposition the profession to the public, get new clients through peoples doors. AFA and FPA have lost all relevance.
They love doing surveys. Maybe they should survey their members about their mental health.
They don’t need to. There members have their membership fees paid on their behalf. A $60,000 cheque anda list of names gets you a lot. Advisers don’t rank. Do we really want a body like that? Why are FPA members selling out their peers?
Sounds like you are asking that question more as a statement but you should look into it to find out what they are doing. It is quite a lot but it’s hard to please everyone specially people who can’t be bothered to actually contribute to the process and just prefer to display their ignorance at what is being done by the AFA and FPA. I know, I used to be as ignorant as you.
Rubbish. The FPA don’t won’t member involvement. Over 2 decades of a being a member I can attest they’re focused on only themselves. Very sad to cancel my membership but we can’t have the FPA falsely claiming to represent advisers.