The interim chief executive officer of the Personal Finance Society has reiterated that the CII is unable to use any funds without approval from the board, in response to an open letter from members.
The response signed by Don MacIntyre, welcomed Alasdair Walker’s recent open letter, which the PFS boss said recognised the “deep and long-standing support for the organisation”.
MacIntyre said he was writing on behalf of the PFS board and addressed the points made in the original letter and the more recent ‘open’ letter.
“As you are aware, through your attendance at the PFS AGM on September 19, 2023, PFS members were provided with the organisation’s financial statements for the year ending December 31, 2022 ahead of that meeting,” he said.
“Those statements, as required, were independently audited before publication. The stated closing PFS reserves, at end 2022, were £17,252,000, which accords closely with the sum you reference in your correspondence.
“It is also the case that the CII retains, at all times, a cash balance which exceeds the PFS intercompany debt it holds.”
MacIntyre said this is evident in the published CII accounts for year-end 2021, and will likewise be evident when the CII 2022 accounts are published.
He also stated that the CII has controls in place to ensure this continues to be the case, and that – as PFS CEO – he sees these controls in operation.
“Furthermore, I must emphasise that it is simply not possible for the CII to use PFS funds without PFS board approval,” he said.
“As such, the PFS board unceasingly retains the opportunity to spend or invest the full total of PFS reserves as it deems appropriate.
“In any case, the PFS board and CII group board agree that the PFS reserves are to be used solely for the benefit and growth of the society as set out in the objects of the PFS, something that our interim chairperson restated at the AGM.”
This comes as earlier today the CII and PFS 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.
In the letter to Walker, MacIntyre said the PFS board would like to emphasise that transparency and accountability are fundamental principles to which every member subscribes.
He said all directors are committed to ensuring that any financial transactions or adjustments are carried out in "a transparent and justifiable manner" and this is being supported through a set of revised governance documents.
“I also know that every member of the PFS board takes their personal fiduciary responsibilities, and dedication to our members, extremely seriously,” he said.
“Each director, no matter how they are appointed, is aware of their responsibilities to the society and its stakeholders.
“The PFS board’s commitment is unwavering, and it prioritises the best interests and success of the society above all else.”
MacIntyre apologised in the letter that the attending members of the PFS board did not provide answers to Walker’s questions at the AGM.
He said the PFS understands that some members may prefer alternative arrangements to the articles of association that are currently in place, and it was explained that any changes to those articles would need to be carefully considered.
“We wish to continue the dialogue, to consider what is appropriate in the circumstances,” he added.
“In conclusion, the PFS board is committed to working collaboratively, transparently and with members’ interests to the fore.
“We will keep you, and all our members, updated on developments and will in future address any concerns promptly and transparently.”
sonia.rach@ft.com
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