Many years ago I set up an IFA business in the City of London. My brilliant business partner, Jo Smith was on the Society of Financial Advisers (SOFA) board and was senior examiner of what is now AF7, the pension transfer exam. We provided technical training to financial advisers and proudly paid our SOFA membership fee and displayed the SOFA logo in our street facing window.
Move forward 20 years and we are in the position where SOFA’s replacement, the Personal Finance Society (PFS) is rudderless without a CEO. The PFS is the oldest of the CII societies and is the largest membership of financial advisers in the UK dedicated to building trust in the financial planning profession. Not only is the PFS without a leader, the Chartered Insurance Institute (CII) intends to deregister the PFS as an independent entity.
The CII will formally consult with financial planners later this year to seek their views on the PFS. I believe it is important that financial advisers speak up to let their thoughts be heard.
Robert Reid, an ex-PFS president says: “The CII management has failed to realise the PFS is not a corporate trading company but rather a member body for advisers. The past presidents needed to underline the seriousness of the issues that this had created. We have set up PFS Solo to help advisers understand the importance of having a representative adviser trade body and how to vote at the CII AGM. Folding the PFS into the CII will lose the much-needed focus needed for effective lobbying and interaction with many other bodies such as the FCA and HMT. This is not the time to emasculate the PFS.”
Many readers will know that in the past there were more financial advisers, investment products could be bought over bank counters and “the man from the Pru” and the like served those no longer able to afford financial advice due to adviser charging. When we wanted input to the regulator or any rule change or guidance, we looked to our trade body first.
The need for a financial adviser membership body has not changed. I’ve just spent considered time reviewing financial advisers’ Money Marketing awards submissions. Most entries talk about their PFS membership, how they network and learn through regional PFS Institutes; how they push for chartered status, use PFS resources to get there, and how they share their frustrations and thoughts with the PFS.
As stated on IFA Rowley Turton’s website Rowley Turton: “The concept of chartered professionalism traces its roots back many centuries, to the years following the Norman invasion in 1066. That’s some track record. And in the 21st century, chartered is more relevant than ever in terms of winning and securing public trust.”
This should be the PFS raison d’etre and all effort should be made to preserve this valuable member body for both advisers and the public. If the public looked today at the CII website for latest news there is no mention of personal financial planning, and this may remain the case even if the PFS is lost within the huge CII. The public need the PFS as do advisers.
Marine, aviation and caravan insurance is like chalk and cheese compared to personal financial planning. The lobbying requirements and links to government are very different. It is therefore important that financial advisers stand together in a separate member body that represents the unique needs of professional financial advice and the public.
Kim North is managing director at Technology & Technical
The FCA must be laughing their woolly little socks off.
Trade body … if they were a boy band they would be called “no direction”
these organisations rudderless about as much use as the treasury select committee and the fca
I agree with all that Robert Reid and Kim North have to say – but my impression has been that apart lobbying in the interests of advisers, the PFS has too often appeared the ‘pursed lip of the church’ – even if it has been effective in many areas. It has become party politicised and woke to a degree many members find unappealing, which means they don’t engage. However – its becoming subsumed by the CII’s general insurance responsibilities would be a highly undesirable ending. The PFS has sometimes alienated firms too – by appearing too much a trade union for individuals, in opposition to firms’ interests where the two conflict. This is unhelpful given the owners of the vast majority of firms are also financial advisers and it discourages engagement.
As someone who has been a volunteer on a PFS regional committee for the past 10yrs, the PFS really came into their own as a Professional Membership body (not a trade body as some like to confuse it with) following the change of leadership in 2013.
The change of direction under the last CEO was immediate and between 2013-2016 we had to keep moving venues as numbers attending PFS events rose by over 6 times the previous numbers.
Of note was the lobbying and more importantly the evident involvement of the PFS with HMT, FCA and others which we had not seen before, either by SOFA, LIA or PFS.
In fact we have not seen Trade Bodies be anywhere as recognised as the PFS!
FCA, TPR, FOS all regularly attended regional events and for the first time became accessible to front-line advisers. As a committee we were amazed at the condor and level of knowledge of FCA speakers and they often confirmed how important the PFS had become and how respected the CEO and PFS board had become further up.
The long list of initiatives and the hugely successful Festival of Financial Planning have been milestones – whatever the gaps, the successes have been impressive but like all of us they could do better, or won’t be everyones cup of tea.
PFS now rudderless without a CEO, yes…but the looney’s driving the CII bus won’t listen and don’t seem to care.
The recent Q&A’s were embarrassing PR stunts and CII should be ashamed of their behaviour and culture.
As Kim has suggested, if you care, then lobby and make a difference like Robin Melley, Alasdair Walker, Sharon Sutton, Brian Steeples, PFS-SOLO and many others!