Caroline Stuart has resigned from her roles as president and member director of the Personal Finance Society (PFS) board.
She is standing down with immediate effect.
In a statement, Stuart said: “The untold pressure that the PFS board is currently under is now also at the detriment of my health and I have taken the very difficult, but I feel only, decision available to me to preserve my own health, and have resigned my position as president and member director of the Personal Finance Society, with immediate effect.”
“I have been working with the PFS on an entirely voluntary basis for close to eight years, both as a member and chair of the Paraplanner Panel and, since September 2018, as a member director and vice president of the PFS board.
“It was the greatest honour of my professional life to be elected as president of the PFS in September 2022, particularly as I was the first paraplanner to be elected to the role.
“However, I will continue to give my support for the PFS in any way I can and I would also encourage all PFS members to do the same.”
Her resignation comes after the Chartered Insurance Institute (CII) appointed three new institute directors to the PFS board on 21 December. The CII also announced its intention to take control of the PFS board by appointing a majority of directors.
CII chair Helen Phillips explained that the CII Group board “was left with no alternative” after failed independent mediation as well as “serious and significant governance failures”.
Yet, Stuart denied in her statement the existence of governance failures.
She said: “As a member of the PFS and the PFS board, I cannot support the actions taken by the CII and by implying they are forming the majority without consultation, they have treated members with utter contempt.
“My fellow member directors and I completely and strongly refute all allegations made by the CII in respect of governance failings and despite numerous requests to provide evidence of these governance failings, to date, none has been forthcoming.
“Why is this? I believe it is because there is none, and these allegations are in my opinion blatantly the only avenue remaining for the CII to access the funds I believe they need to prevent the organisation completely failing.”
Stuart also called every member of the PFS and CII to scrutinise the position of the CII and hold the CII leadership team to account.
She said: “I believe that the CII are hoping to access and move some or all of the PFS reserves to the CII and are relying on member ‘apathy’ and disinterest to enable them do this.
“I therefore implore all members of the PFS, to take whatever action you can to help prevent the wholesale strip-mining of the PFS and its reserves, by and for the benefit of propping up what I believe is a badly run, financially exhausted CII.
“Demand an EGM, use your voice and protect your PFS and its reserves from being consumed by the CII forever.”
Wishing Caroline well and thanking her for the hard work.
It is not too late for Mr Valance and the boards of CII AND PFS to show leadership, restraint and unite and show true professionalism
or resign at the EGM. Clearing the way to allow fresh eyes and talent to come forward. The CII and PFS ARE BETTER together and all our members deserve better than this behaviour!
We are the standards that the public should be able to trust. Lead and acknowledge what’s happened and put it right.
Mark Hassall Chairman of PFS Stamford and President of Institute of Cambridge
Will the members act, will they stand up and fight for what is right?
Well, sadly, NO. Having worked as an adviser for nearly four decades I can already see the outcome.
Advisers will, moan, blog, shout and as usual do nothing. They will then moan, complain, blog about the outcome, how no one did anything, having done nothing themselves.
I have been saying for many years the CII were not fit for purpose, that the PFS and advisers needed to break the chain, break away and form an truly independent adviser body.
It is very sad that advisers love to moan, love to criticise others, love to comment on others failings with little or no actual facts. Yet, when asked to stand and be counted, slither back to their trench and take cover.
What will it take for advisers to stand together, fight and protect each other?
Thankfully I have retired.