CII boss vows to work with profession towards shared goal

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CII boss vows to work with profession towards shared goal
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The Chartered Insurance Institute's interim boss has vowed to work with the profession towards a shared goal of providing members with support and services and to build public trust.

In an email to members dated February 17, interim chief executive officer Jonathan Clark said he believes the CII wants the same as its members and that his “focus is on that future”. 

He wrote: “I acknowledge and appreciate you raising your concerns with me, and I can assure you that I am working with my team, the CII Board and the PFS directors on finalising the 2021 results and working on our plans for going forward.

“Whilst I am early in my days as interim CEO it is clear that, like many other organisations, we are dealing with building back from the impact of the pandemic, but I can assure you that CII Group assets are well able to support our business activities for 2022.”

Clark added: “I firmly believe we all want that same thing and so my focus is on that future. As soon as I can provide more information on the plans for going forward, of course, I will.”

However, responding to his email, members of the Insurance Institute for Shropshire and Mid-Wales (IISMW) raised further concerns on Clark’s reference to the CII Group assets rather than just the CII. 

This was in line with previous media reports suggesting the professional body was looking to borrow £5mn from its subsidiary, the Personal Finance Society. 

Members at the time noted the CII's net asset position had dropped over the years from £25.8mn in 2016 to £16.8mn in 2020.

The accounts showed liabilities in 2020 amounted to £27.6mn, 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. 

In the members’ reply, the IISMW wrote: “We are reassured by your commitment to the role as interim CEO of the CII and hope that, with a different approach, you will be able to bring some [...] stability and focus on the CII’s primary purpose as a qualifications body and equally bring under control the deteriorating operational standards and gross over-spend on the change programme. 

“We of course acknowledge that Covid has had a detrimental impact on some organisations but the issues created and being faced by CII and its members are not solely related to the effects of the pandemic. The deterioration in operational performance, outdated qualifications framework and what many members see as poor decisions over the past five years are unrelated to Covid [...].”

This latest correspondence came after Clark told members earlier this month that the CII had all the funds needed to support its business activities for 2022.

Last June, the PFS board voted down the CII’s proposal to deregister as an independent entity

The CII had asked the PFS board to consider a deregistration of the adviser-focused body following unsuccessful attempts in 2016 and 2019.

The IISMW wrote: “We can see from past accounts that PFS assets have grown, whilst CII assets have diminished and therefore using ‘Group’ accounts disguises the CII’s true financial performance and position - let's please have some transparency under your tenure."

Clark said one of his key focus areas was to ensure the insurance and personal finance professions “use the diversity of skills we have collectively to make a positive impact on the financial resilience of society”. 

He explained that the way the CII Group is set up means there is a great opportunity to "utilise strengths to help foster the trust and engagement in our professions that we all want to see". 

“I am committed to ensuring that we can all, collectively, work together best towards our shared goal – providing all our members with the support and services they need to thrive professionally and so to build public trust.”

sonia.rach@ft.com

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