Regulatory reforms governing financial advice following and coinciding with the Hayne royal commission have led to heightened "anxiety and mental anguish" in the industry and even contributed to suicide rates, lobby groups have told the federal Parliament.

The Association of Financial Advisers (AFA) and Financial Planning Association (FPA) have warned of a mental health crisis among their membership, which they claim has been exacerbated by the "pace of change" emanating from the recommendations of the royal commission and government's contentious mandatory professional standards regime.