The negative light the advice industry is being painted in by the media has been acknowledged as one of the greatest contributing factors to poor mental health factors for advisers.
This was along with regulatory and cost pressures which had been well documented issues in the industry.
In a webinar with the Association of Financial Advisers (AFA), Dr Adam Fraser said all the changes in the industry had made it hard to do the role.
“It’s very demanding and puts a lot of pressure on them and all the regulatory restraints take time,” Fraser said.
“How they’re being painted in the media, how they’re being judged – and that one really hurts.
“What we haven’t paid enough attention too is the impact of that on people; it’s deeply wounding and scaring for many advisers who have worked hard, who have so much meaning and purpose attached to what they do to have this unfair criticism of them out there in the market place.”
Fraser, along with AIA Australia, The e-lab and Deakin University, had released the ‘Australian Financial Advisers Wellbeing Report 2021’ earlier this month, which showed advisers were showing high levels of burnout.
“What [the research] shows is that we have serious concerns about sustainability and can they continue doing the job, but also that their wellbeing is suffering terribly,” Fraser said.
“It’s important to the public because its critical for people to have proper cover and good financial advice.
“This is an important job and it’s a group of people that are finding it hard to stay in the job.”
Michael Nowak, AFA national president, said he took the media messaging personally.
“It really hurt my confidence as an adviser, but then also the rapid regulatory changes that came out of that, the changing of fee structures and the education requirements are quite confronting and difficult to deal with,” Nowak said.
The AFA had earlier called for the end of the “vilification” of financial advisers after criticism from a Labor Senator during the passing of the Your Future, Your Super Bill.