Personal Finance Society members have launched a campaign to stop the Chartered Insurance Institute from flooding the PFS board.
In an email to members, PFS fellow Alasdair Walker wrote: “[Yesterday] the CII contacted the PFS membership with an email filled with misinformation and half-truths.
“The truth is this: The CII is running out of money, and they want unfettered access to the £19m of PFS member funds which are currently held in reserve for the PFS.
“Make no mistake – without our swift action, PFS members will find themselves the poor younger siblings of an ailing general insurance membership body.
“The CII’s plan of action appears to be simple: Flood the board with a majority of CII directors, and force a vote to deregister the PFS.
“This has been tried before, but the stakes are higher now, because the CII’s coffers are empty.”
It’s all about the money
The PFS is responsible for the majority of CII “group” revenues, and all of the surplus.
With exam fees included, I reckon this is >60% of group revenue.
There is £19 million of surplus revenue, which was paid by, and belongs to, the PFS membership.
— Alasdair Walker (@financialwalker) December 21, 2022
The campaign website states: ” We do not want to be subsumed by a professional body of insurance practitioners. We will not be treated as a cash-cow.”
The PFS itself has condemned the CII’s decision to overhaul its board.
PFS president Caroline Stuart said the decision by the CII board, which was announced to the PFS board, the membership and the wider insurance and personal finance communities this morning (21 December), came as a “huge shock”.
“Having not informed our board of its intentions, the CII has acted unilaterally and without PFS leadership or member consent,” she said in a statement.
The CII Group has announced it will appoint a majority of directors to the PFS board, after independent mediation failed.
It yesterday (21 December) announced the appointment of 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.
The decision has had the advice community up in arms.
Former president Sarah Lord has slammed the 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.
She 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.”
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.”
I suppose the process began with the takeover (merger?) of the LIA by the CII resulting in the PFS. As a Past President of the LIA (last Century!) it seems such a shame that it has come to this. Exams are important but are not everything. #StrikeAction?
— Andrew Bedford (@andrewbedford63) December 21, 2022
Equalising the PFS board? Power grab by the CII more like
— Kusal Ariyawansa (@Kusal_CFP) December 21, 2022
Disappointing to see @CIIGroup bully their way onto the PFS board – also worrying that the CII now have control over the PFS finances given their track record with poor management and ‘borrowing’ from the PFS https://t.co/Q4MeExw1Od
— Elliot Guthrie (@elliotguthrie) December 21, 2022
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