The FMA says the way the financial advice sector has supported those working across the industry during a period of regulatory upheaval is a healthy sign.
Its comments follow a report produced by AIA NZ indicating that a significant number of advisers are facing high levels of stress due to the changing regulatory environment.
Speaking during the FSC’s Future Ready Advice Summit on Thursday 17 February, Derek Grantham, the FMA’s Principal Consultant, Market Engagement, said the biggest stand-out for the past two years has been the amount of support that’s been offered to advisers.
“The way in which this sector has rallied around financial advisers needs to be acknowledged and celebrated – it is a really healthy sign,” he said.
Among the key findings of AIA’s Adviser Wellbeing Research are that:
- 20% of those surveyed are seeking, or have sought, medical care for stress
- 44% believe stress is impacting their sleep
- 15% have been warned by their doctor about suffering a stroke
- 25% are preparing to take stress leave
Among the report’s key take-aways are that 25% of financial advisers are ready to leave their job due to stress and 17% may be prepared to leave the industry. See our story: A Quarter of Advisers Ready to Leave Their Job
Grantham said: “Advisers have clearly been doing it tough through very stressful times. The new regulations have been challenging for all of us.
“There’s new language, new terminology, and new concepts that we have all had to get our heads around. Advisers and the firms have had to implement that in the real world.
“However, one winner of all of this hard work is the consumer. What we have today is a really strong sector that is working together, and I think it is set to achieve good things.”
In a separate statement, the FMA says it has engaged closely with the financial advice sector to educate advisers on what is required by the new regulatory regime.
The FMA has held national roadshows – attended by thousands of people – produced guidance and resources on licensing and good conduct, as well as hosting webinars.
“We continue to engage closely with the financial advice sector,” says an FMA spokesperson. “We have open dialogue with industry associations to gain feedback and understand the challenges faced by advisers.”
There are two versions of AIA’s report you can download: