CII moves to take control of PFS board
The Chartered Insurance Institute (CII) has moved to take control of the board of its Financial Planning arm, the Personal Finance Society (PFS), following the failure of mediation attempts.
The CII and the PFS have been at loggerheads over the finances and direction of the PFS.
The CII, which has more than 120,000 members including 40,000 PFS members, has informed the PFS that it intends to appoint a majority of directors to its board.
As part of the process it has today appointed three of its directors to the PFS board.
The CII said that it has moved to take control of the PFS following the failure of mediation attempts and due to concerns over governance failures.
Helen Phillips, chair of the CII, said: “This is not an outcome the CII group board wanted or pursued. The CII team has worked hard for many months, initiating independent mediation, and responding to the PFS board’s demands diligently, professionally and with immense goodwill.
“Therefore, it is deeply disappointing that independent mediation has failed, and serious and significant governance failures have arisen, which leave the CII group board with no alternative but to take this action at this juncture and resolve matters without further delay.”
The PFS is a subsidiary of the CII, and its articles of association give the CII the right to appoint directors to the PFS board.
The PFS board is currently made up of five PFS member director and two institute directors, with the CII today appointing three further institute directors which it said will, “equalise the PFS board with immediate effect”.
The CII also plans to add another director to the PFS board after 30 days, giving the institute directors full control over the board.
The three new directors appointed by the CII to the PFS today are:
- Sarah Howe, former CEO of Harpenden Building Society and former independent chair of the consumer panel at Openwork
- Neil Watts, former board member at examinations regulator Ofqual and complaints committee member at the Independent Press Standards Organisation
- Azlina Bulmer, membership and engagement director of the CII
Alan Vallance, CEO of the CII, said: “The newly composed board will continue to be mandated to focus entirely on protecting and serving PFS interests. The CII team will work with the new PFS board to embed best practice and establish the long-term governance arrangements that will ensure PFS members receive all the services and support they deserve without any further delay.”
The CII said the changes to the board would not lead to any changes to the services received by PFS members, including all PFS qualifications, exams, certificates, training, events, and the statements of professional standing, as well as all operational functions, including marketing, HR and IT.
Over the past year there has been considerable criticism of the PFS and the CII. The CII wanted to de-register the PFS as a separate business to bring it closer to the CII but later changed its plans after a membership consultation.
The PFS CEO role, previously held by Keith Richards, was axed last year by the CII but was reinstated in February this year in a U-turn, with many PFS members angered about the axing of the role.
• This is a developing story, please check back later for more details.