The Personal Finance Society board is to meet early in the new year to consider its response to the Chartered Insurance Institute’s decision last week to appoint a majority of directors to the PFS board.
In a statement released this morning (December 30), PFS interim chief executive, Don MacIntyre announced that the board will be “meeting early in the new year to consider its response to action taken by the CII on 21 December”.
The statement continued: “Under the PFS’ articles of association, the PFS has 30 days from the date of the notice (ie, until 19 January 2023) to consult PFS members on this change of control and consulting PFS members will be the urgent priority of the newly constituted PFS board."
MacIntyre appealed to PFS members who wish to express their views about the actions taken by the CII in advance of the board consultation to email him at don.macintyre@thepfs.org.
Today’s announcement comes in the wake of a failed attempt by the PFS to hold an emergency general meeting on December 22 in response to the CII decision.
Commenting at the time, Caroline Stuart, president of the PFS, said: “Despite the presence of all of the member directors, and sufficient for a quorum, the meeting was rendered inquorate due to insufficient CII appointed directors attending to make a quorum.”
The PFS is a subsidiary of the CII group, and the PFS’ articles of association give the CII group board the right to equalise and/or appoint a majority of directors to the PFS board.
The CII announced its intention to appoint a majority of directors to the Personal Finance Society board, following failed mediation attempts on December 21.
It also announced its decision to appoint three institute directors to the PFS board with immediate effect.
At the time, Helen Phillips, CII group chair, said: “This is not an outcome the CII group board wanted or pursued. The CII team has worked hard for many months, initiating independent mediation, and responding to the PFS board’s demands diligently, professionally and with immense goodwill.
“Therefore, it is deeply disappointing that independent mediation has failed, and serious and significant governance failures have arisen, which leave the CII group board with no alternative but to take this action at this juncture and resolve matters without further delay.”
The PFS board is currently made up of five PFS member directors and two institute directors.
However, the CII is appointing further three institute directors: Sarah Howe, Neil Watts and Azlina Bulmer.
The announcement by the CII left many advisers, PFS members and past presidents shocked.
jane.matthews@ft.com
