The Chartered Insurance Institute and Personal Finance Society have pledged to put all their resources towards developing a stronger relationship.
It has been almost one year since the dispute between the CII and the PFS began and yesterday (October 30), FTAdviser delved into the developments between the body and its members since then.
It all began in December 2022 when the CII announced it was taking control of the PFS board amid "failed mediation".
Since then, there have been exits and appointments at the group and the PFS carried out an independent governance review.
Last week, the CII announced that Alan Vallance will step down from his position as chief executive in Spring 2024 to take up the equivalent role at the Institute of Chartered Accountants in England and Wales.
This comes after Sian Fisher announced in 2021 that she would step down after more than six years at the helm of the CII.
But the PFS and CII have reiterated to members that the bodies are now moving forward.
In a joint statement from Alan Vallance, chief executive of the CII group, and Don MacIntyre, interim CEO of the PFS, they told FTAdviser: “We have stated clearly and repeatedly to members over recent months that the CII and PFS are now moving forwards together.
“We understand that some members may still have concerns, and we are listening carefully.
“All our time, energy and resources are now fully invested in building a stronger future, and delivering exceptional services, for our PFS and CII members.”
Last week, there was also some clarity on what had been spent on resolving problems between the two bodies.
In its full-year results ending December 31 2022, published this month (October 25), the PFS reported total operating expenses of £7.99mn in 2022, of which £0.85mn was towards expert legal and financial advice on the back of the CII saga.
The accounts said the spend on expert legal and financial advice was "required by the unique circumstances triggered by the CII's desire to begin mediation from July 2022".
This led to members of the PFS signing an open letter to the board outlining their concerns and calling for all PFS funds to be transferred to that organisation's control.
In the letter, dated October 27, Alasdair Walker, chartered financial planner and author of the open letter, called for members who shared the same concerns to add their names as signatories. There are currently around 197 signatories.
The letter urged the PFS board take the following "urgent" steps:
- Seek an immediate transfer of all PFS funds to an account in the sole name and control of PFS.
- Provide an undertaking not to allow PFS funds to be ‘re-charged’, or ‘re-addressed’, or invoices for ‘past adjustments’ to be accepted.
- If CII are unable to transfer funds immediately, to initiate proceedings for recovery of the funds via the courts.
- Make immediate amendments to the articles of association to clarify the position of PFS funds in the event of wind-up, and to protect the body against further threats from CII.
sonia.rach@ft.com
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