Former PFS presidents slam ‘aggressive’ CII takeover as ‘deeply cynical move’

Former president of the Personal Finance Society Sarah Lord has condemned the Chartered Insurance Institute (CII) for its “aggressive” takeover of the PFS board, calling it a “deeply cynical move”.

Lord served as PFS president for two years between 2020 and 2022. She was recently succeeded by Caroline Stuart.

Reacting to the news that the CII will appoint a majority of directors to the PFS board, Lord said: “This is a deeply cynical move by the CII and the orchestration of the announcement that we have witnessed today shows that this is a premeditated decision.

“I have until very recently been in conversations with the CII leadership and we have engaged in mediation at their request. The conversations were still underway. It is extraordinary that they have been so disingenuous.

“Acting in this way today, and in such an aggressive way, is likely designed to diminish the existing PFS boards powers and undermine its forward-looking strategy.

“I will do all I can over the coming weeks to ensure the PFS, its members and the professions interests are protected.”

Another past president of the PFS, Garry Hale (2012–13) said: “I am shocked, stunned and angered that the CII has chosen today to take the harmful and cynical decision to announce its intention to ‘flood’ the PFS board with CII nominee directors.

“The timing of this on the eve of Christmas celebrations is a blatant attempt to avoid scrutiny, avoid CII/PFS member backlash, avoid journalists’ questions and prevent regulators and politicians from actively understanding or mediating the decision in the full knowledge that the majority of the members, sector journalists and regulators will be off work and with their families, in many cases for the first time in three years.

“I would urge all PFS members to speak out and raise any concerns they have about this potentially damaging move.”

The CII today (21 December) appointed three new institute directors to the PFS board with immediate effect.

After a 30-day consultation period has elapsed, the CII Group board said it intends to form a majority by appointing a further institute director to the PFS board.