The Chartered Insurance Institute has faced backlash after it told members it had all the funds needed to support its business activities for 2022.
In an email to members dated February 1, interim chief executive officer Jonathan Clark sought to clarify that the CII group had sufficient assets to see it through the year.
This was in response to media reports suggesting the professional body was looking to borrow £5mn from its subsidiary, the Personal Finance Society.
Clark wrote: “Many of you will be aware of the unnecessary speculation in the press recently, which I want to address and put into perspective.
"I can assure you that CII Group assets are well able to support our business activities for 2022."
Clark had sought to allay concerns from some members that the CII might be relying on income from the PFS to keep it afloat, dating back to October, in the wake of the CII's third attempt to deregister the PFS.
Members at the time noted the CII's net asset position had dropped over the years from £25.8m in 2016 to £16.8m in 2020.
The accounts showed liabilities in 2020 amounted to £27.6m, a chunk of which was owed to the PFS, leading some to speculate that if the body were to be de-registered the debt burden on its parent would be eased.
At the time, Sian Fisher, former chief executive officer of the CII, admitted to "not [being] where we want to be" on financial strength and pledged to restore the body's finances.
In response to Clark's latest letter, the Insurance Institute for Shropshire and Mid-Wales accused the CEO of hiding behind the wider group's financials, saying his letter had referred to the 'CII Group's assets' which included those of the PFS and other charities.
The IISMW said: “Hiding behind the group account's position is less than helpful, so hopefully you can reassure members and the network specifically about the CII’s financial position, excluding PFS and charities…please?"
A spokesperson for the CII did not want to comment on the allegations.
They said: “As a professional body, we have regular discussions with the boards of our membership societies, in order to shape our work and to ensure we continue to offer the support our members need and expect.
“The Personal Finance Society is a valued part of the CII Group, and we achieve a great deal working together, responding to the demands of a modern world recovering from the pandemic.”
sonia.rach@ft.com
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