It has been almost one year since the dispute between the Chartered Insurance Institute and the Personal Finance Society began and there have been many developments between the body and its members since then. FTAdviser delves into the issues.
It all began in December 2022 when the CII announced it was taking control of the PFS board amid "failed mediation".
This led to members of the PFS board hitting back at the CII after its meeting was rendered “inquorate” due to insufficient CII appointed directors, leading the institute to accuse the PFS of “another contravention” of board confidentiality.
Since then, there have been exits and appointments at the group.
Last week, the CII announced that Alan Vallance will step down from his position as chief executive in Spring 2024 to take up the equivalent role at the Institute of Chartered Accountants in England and Wales.
This comes after Sian Fisher announced in 2021 that she would step down after more than six years at the helm of the CII.
Last week, there was also some clarity on what had been spent on trying to resolve problems between the two bodies.
In its full-year results ending December 31 2022, also published this month (October 25), the PFS reported total operating expenses of £7.99mn in 2022, of which £0.85mn was towards expert legal and financial advice on the back of the CII saga.
The accounts said the spend on expert legal and financial advice was "required by the unique circumstances triggered by the CII's desire to begin mediation from July 2022".
This recent news has led to members of the PFS signing an open letter to the board outlining their concerns and calling for all PFS funds to be transferred to that organisation's control.
In the letter, dated October 27, Alasdair Walker, chartered financial planner and author of the open letter, called for members who shared the same concerns to add their names as signatories. There are currently around 197 signatories.
The letter urged the PFS board take the following "urgent" steps:
- Seek an immediate transfer of all PFS funds to an account in the sole name and control of PFS.
- Provide an undertaking not to allow PFS funds to be ‘re-charged’, or ‘re-addressed’, or invoices for ‘past adjustments’ to be accepted.
- If CII are unable to transfer funds immediately, to initiate proceedings for recovery of the funds via the courts.
- Make immediate amendments to the articles of association to clarify the position of PFS funds in the event of wind-up, and to protect the body against further threats from CII.
Keith Butten, director at Boosst - Financial Planning, said what PFS members have endured over the past couple of years has been anything but the positive contribution to the profession it should be.
“Elected volunteers being unable to get and share information with the membership that they represent is just one small example,” he said.
“Members have been kept in the dark, like Alasdair, I submitted questions and was promised answers but nothing informative has reached the membership.
“Thankfully we have more than one professional body and the PFS, whilst having large member numbers due to the CII qualifications, is not the only show in town.”
Button said at Boosst, he uses the Chartered Institute for Securities & Investment for Statements of Professional Standing, their learning suite and CPD recording.
“You could say that like many firms, Boosst is proof that we do not need the PFS/CII but choose to support it simply out of loyalty and the choice it adds,” he said.
