The Personal Finance Society has blamed a lack of CII directors attending for its decision to abandon an Emergency PFS board meeting today.

The PFS President Caroline Stuart said that there were not enough CII directors to form a quorum, a minimum number of directors needed for the meeting to take place.

She said the meeting would need to be rearranged soon.

The CII has so far not commented.

The news comes as a group of PFS members has launched a group called 'Our PFS' to fight the CII moves (see below).

In a statement this afternoon from the PFS about the Emergency Board meeting, Ms Stuart said: “As stated yesterday, the Personal Finance Society was scheduled to hold an emergency board meeting today following receipt yesterday morning of the CII’s notice of its intention to appoint three institute directors to equalise the PFS Board with immediate effect, and its further intention to appoint a majority of directors to the PFS board.

"This intention would mean the CII gains indirect control over the PFS board and PFS assets. Despite the presence of all of the member directors, and sufficient for a quorum, the meeting was rendered inquorate due to insufficient CII appointed directors attending to make a quorum.

"I am therefore seeking to rearrange this emergency meeting of the PFS board as soon as possible and as an urgent priority.”

The Personal Finance Society (PFS) voiced its "shock" yesterday at a decision by parent body the CII’s to take over the PFS board by appointing three new directors yesterday.

The PFS wants to hold an Emergency Board Meeting to discuss its next steps within the 30 day consultation period declared by the CII under the Articles of Association.

Yesterday the CII appointed three new board members to the PFS board in an attempt to take control of its subsidiary.

The PFS said that the President and CEO of the PFS were not notified about the appointments until the morning of the announcement and shared its dismay at how members were informed via a membership email which the PFS President and CEO were not shown before it was issued.

The PFS criticised the CII for not inviting a representative from the PFS to join the morning briefing hosted by the CII, which only came to the PFS’ President and CEO’s attention following press coverage of the event.

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 two organisations have been at loggerheads for some time over the structure and direction of the PFS. The CII last year axed the role of PFS CEO held by Keith Richards.

The PFS board is currently made up of five PFS member director and two institute directors, with the CII yesterday appointing three further institute directors which it said will, “equalise the PFS board with immediate effect.” 

The CII said it intervened at the PFS due to concern over governance issues. CII CEO Alan Vallance said that the PFS had set up new committees without CII approval and also held meetings without informing CII directors who were entitled to attend.

Mediation has been taking place between the two organisations over the past few months but was ended recently by the PFS, according to the CII.

The move by the CII to take full control of the PFS could open the door to the PFS to try to split off from the CII or pave the way for a new body for Financial Planners to be established. 

• A group of PFS members has launched a campaign called 'Our PFS' to fight the CII's full takeover of the PFS board. The website is here: https://ourpfs.co.uk/