The Personal Finance Society board has voiced criticism of its parent body, the Chartered Insurance Institute, as a review of both bodies’ future strategies gets under way.

The two organisations have been at loggerheads over CII plans to ‘deregister’ the PFS as a separate company to bring the two bodies closer together, streamline decision making and save on costs.

Both organisations are part of the 120,000 member CII umbrella group.

The Chartered Insurance Institute today launched its previously announced ‘Shaping the Future Together’ consultation to encourage members to have their say on the future strategy of the organisations.

However, a number of PFS Past Presidents and other critics have declared their opposition to CII plans to ‘deregister’ the PFS, a move that would effectively end its semi-autonomous status. Some critics have also called for a completely independent PFS.

The consultation – www.ciigroup.org/en/shaping-the-future/ - outlines possible proposals.

Among potential changes are:  

1. Making the qualification framework and learning provision more “user-friendly, accessible, and capable of meeting the future learning needs of all students.”
2. Giving members more flexibility to achieve the professional body’s Chartered and Fellow designation, so qualifications and experience are no longer the only route.
3. Replacing the current membership model with three levels of membership: Member, Chartered Member and Fellow.
4. Exploring a possible requirement for a Statement of Professional Standing for insurance professionals.
5. Exploring possible amendments to the CII’s governance structure to provide greater clarity and cost efficiency.

Dr Helen Phillips, chair of the CII, said: ““We welcome feedback from all our members and, as a board, we will listen carefully to the responses. They will help inform how we shape our strategy for the next five years, and ensure we are fit for the future. “

The CII, which has 120,000 members including 40,000 in the PFS, will run both live consultation events and online consultation.  

CII CEO Sian Fisher, who announced recently she will be stepping down in March, said: “We know that, as a professional body, we can only provide our members with the support and services they want, if we truly understand their needs and expectations. That is why this consultation – Shaping the Future Together – is so important."

The CII will share the findings of the consultation and how it will help shape the group’s strategy next year.

In a separate statement today the PFS, which recently saw the post of PFS CEO removed, expressed disappointment with some aspects of the consultation.

Sarah Lord, President of the Personal Finance Society, said: “The PFS board welcomes the fact that the CII board has chosen to issue the “Shaping the Future Together” consultation and encourages PFS members to engage and respond accordingly.

“The PFS board regrets that the CII did not engage with the PFS board collectively on the drafting of the consultation document and the CII did not bring the document to the PFS board for input. The PFS board is deeply proud of the achievements that the PFS has secured for the PFS membership over the last 16 years.

“The PFS board is disappointed that over the last few years the CII’s education offering, including the qualification framework and pathways has not kept pace with the needs of the profession and welcomes the opportunity for PFS members to input their views on improvements now necessary.

“The PFS board believes in the light of the CII board’s attempt to deregister the company that the status quo is no longer an option and welcomes the implicit recognition of this in the consultation document. We encourage all members to contribute their views on the relationship of the PFS and the CII by responding to the consultation.”

The PFS board is also seeking "clarity" on the current financial position of the CII Group to ensure that reserves accumulated from PFS members’ subscriptions and other activities are used solely for the purposes set out in the PFS Articles of Association to promote and facilitate the provision of financial advice.

The PFS also wants consideration for “alternative legal structures” which will protect and promote the interests of PFS members and the public.

The PFS board says it will continue to work with the CII board to encourage members to respond to the CII consultation and to explore areas, “where we could collaborate for our mutual benefit.”

In response to the comments about the CII’s education offering, Sian Fisher, CEO of the CII, said: “We want to hear about the things that work well and those areas where we could improve or do things differently too.