Major financial loss can have a “catastrophic” social impact as investors go without food, avoid heating or cooling their homes and become isolated from friends and family, a report has found.The results are expected to turn up the pressure on the Federal Government to introduce a statutory compensation scheme to cover do-it-yourself investors.The study commissioned by the Australian Securities and Investments Commission (ASIC) examined the social impacts on investors who were not compensated for significant loss after the failure of managed investment schemes, or because of inappropriate financial advice.The findings will inform submissions to a Government review into introducing a statutory compensation scheme.It comes one month after news that 200 Illawarra investors who invested in collapsed fund manager Trio Capital will miss out on a $55 million Federal Government bailout because they were in self-managed super funds.Most were clients of Wollongong financial planning firm Tarrants.The three-stage study was conducted by Sydney’s Susan Bell Research, who screened 9300 investors to find 29 suitable respondents.It found some investors suffered “catastrophic loss”, which meant “their life will never be the same”. Some felt prolonged anger, uncertainty, worry and depression.Several lost their homes and many had been seriously ill since the loss.Many went without food on occasion and avoided heating or cooling their home.Those who were ashamed to tell others of their plight had isolated themselves from friends and family, and the impact had created long-lasting marital strain.The worst affected investors had invested all their money, had not diversified or took on debt as part of their investment strategy.Around 100 Tarrants investors are seeking legal redress for their loss through Wollongong law firm Maguire & McInerney on the grounds they received negligent financial advice.Tarrants managing director Ross Tarrant said his advice was based on sound research, and has urged clients to join a class action against Trio Capital through the Melbourne law firm Macpherson and Kelley.