Rising business costs, increased workloads and heavier regulatory burdens are harming the mental health of financial advisers.
That’s according to the latest Embark Investor Confidence Barometer published today.
It revealed that advisers are concerned that costs are being driven up due to increased workload fuelled by the recent ad hoc changes to government policy and increased regulatory obligations from the Consumer Duty.
Some 60% of advisers surveyed said that ad hoc changes to tax policy were having a large effect on their business processes.
Meanwhile, 63% said they will need to outsource more to meet Consumer Duty requirements.
The figures suggest an emerging picture of advice firms under significant strain, said Embark.
Also concerning is that 30% of advisers surveyed admitted they were not confident that they are ready for the go-live date of the Consumer Duty requirements on 31 July.
The increased pressures are being compounded by higher business costs and there may be little respite as advisers believe inflation is here to stay.
Only 38% of those surveyed reckoned that inflation would be brought under control in the next two to three years.
Ranila Ravi-Burslem, intermediary distribution director, Embark Group, said: “People’s awareness of mental health and their willingness to discuss it has grown immeasurably in recent years.
“We know from our engagement with advice firms that they are really feeling the impact of heavy compliance burdens, higher workloads, and increased business costs, but our survey really helps put this into perspective.
“Providers and platforms must do more to support advisers and help lighten their workload.”
This week is Mental Health Awareness Week, run by the Mental Health Foundation charity. There are more details here
