Financial Crisis Led to PTSD Suffering Advisors

Posted on September 9th, 2014 at 5:19 PM

From the Desk of Jim Eccleston at Eccleston Law Offices

According to a recent study in Health & Social Work, the event of sudden and dramatic personal financial loss can directly result in post-traumatic stress disorder (PTSD). People suffering from PTSD feel as if the traumatic event is still occurring or will reoccur and the psychological distress intensifies at exposure to external cues that resemble any aspect of the traumatic event. And this applies to both clients and financial advisors, when their financial security is undermined.

During financial crisis, the well-being of financial advisors usually faces double threats not only to the security of their careers, but also to their own portfolios. Advisors normally make the same financial decisions and use the same strategies for their own portfolios as well as for their clients’ portfolios, which could suffer double major losses in both portfolios during financial crisis.  In addition, calls from frightened, disgruntled and often hostile clients who blamed the advisor add to this stress.

It is common for PTSD sufferers to avoid activities, places or people that arouse recollection of the trauma, so avoiding the office and looking for a career change is a common outcome of PTSD. In addition, the traumatized advisor may avoid contacting clients, anticipating a negative, hostile conversation. 

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

January 18, 2022
New York Advisor Receives 17-Year Prison Sentence Over Ponzi Scheme

A New York-based advisor, Perry Santillo, received a 17-year prison sentence for his role in operating a Ponzi scheme that generated at least $115 million from more than 1,000 investors.

January 17, 2022
J.P. Morgan Seeks TRO Over Departing Advisor

J.P. Morgan Chase’s brokerage business has requested that a Louisville, Kentucky, federal court issue a temporary restraining order (TRO) barring one of its former advisors from soliciting its clients.

January 14, 2022
Ohio Advisor Pleads Guilty In $9.3 Million Ponzi Scheme

A former Northeast Ohio-based advisor, Tara Brunst, has pleaded guilty to her role in a $9.3 million Ponzi scheme.