The mood among financial advisers in the Australian life market is picking up, according to the latest Zurich Risk Adviser Sentiment Index.

Optimism is being driven by a more positive view of the regulatory environment and long-term viability of practices, the survey of 200 advisers shows.

One-third of advisers are “extremely” or “very” positive about their readiness for the Future of Financial Advice (FOFA) reforms from July 1, with only 15% expressing negative sentiment.

“These results show adviser sentiment to be at its highest level since we started the survey, despite challenging economic conditions,” Zurich Life and Investments GM Retail Philip Kewin said.

“I think we are seeing evidence that FOFA readiness programs initiated by dealer groups and licensees are hitting the mark and the mindset of advisers has shifted from one of, ‘How do I comply with this?’ to one of, ‘How can I use this as an opportunity to improve my business?’.

“We are probably also starting to see the shoots of recovery in investment markets and this is helping advisers feel more positive overall.”

The survey covers five areas: consumer demand for advised life insurance; advisers’ sales volumes; the regulatory environment; likely sales volume for the next quarter; and the long-term viability of practices.

The overall sentiment score for December was 4.89 out of seven, compared with 4.4 in June.

The study was carried out by Beaton Research and Consulting.