Study: many advisers struggling with mental health

A new report, Mental Health and Emotional Wellbeing of the Financial Services Industry, shows financial advisers are feeling overwhelmed and are feeling a loss of control over their businesses and decisions.

Key findings from the 77-page document include:

• Seventy-four per cent of respondents say their income or business has been affected by the LIF legislation changes

• Twenty-one per cent said their stress levels had increased significantly, and 41 per cent said stress levels had increased, with 32 per cent saying they felt the same level of stress

• Nearly 30 per cent said LIF legislation had created significant financial stress in their business cashflow or income, with 37 per cent saying the changes had increased financial stress, and 34 per cent said it had stayed the same

• Twenty-seven per cent of respondents said that the decrease by half of the upfront fee had significantly impacted cashflow or income, while 42 per cent said it had decreased cashflow, with 31 per cent saying it had stayed the same

• One of the biggest sources of stress was the financial adviser exam, with 84 per cent reporting stress and anxiety

• Women and those who had been in business/advising for longer had less stress overall, with stress levels highest in those leaving the industry, own their own business or have a diploma in financial advising

• Just over half report their mental health had significantly declined, more so in men, business owners and those with a diploma in financial advising

• Physical health was affected in 39 per cent, who said it had ‘significantly declined’, with rates highest in business owners

• Poorer mental health associated with negative media around being a financial adviser was higher in business owners and men

The study was authored by Philippa Hunt of Artemis Investments and Steve Prendeville of Forte Asset Solutions.