The Chartered Insurance Institute has extended a consultation on plans to take over the Personal Finance Society board by seven working days.
The CII is consulting PFS members on plan to take control of the PFS board by appointing a majority of directors.
The CII is at loggerheads with the PFS over its plans to take the majority of seats on the PFS board, effectively taking control of the society. The CII has cited governance and other concerns at the PFS for its decision to take control.
The PFS is unhappy with the move and refutes the allegations of governance failings.
The original consultation period was due to end by 19 January but the PFS board asked the CII board for an extension.
The consultation period will now run until 27 January.
In a statement today the CII said: “The CII Group Board agreed on 18 January to a formal request from the PFS board to extend the period of PFS member consultation in relation to the decision to appoint further directors taken by the CII Group board on 21 December.
“The consultation period will now end on 27 January, providing seven additional days beyond the 30-day period previously established in the PFS Articles of Association. The CII Group board received the request on Tuesday 17 January and considered it as a matter of urgency.
“The CII Group board also agreed to the PFS board retaining a period of time following the closure of the consultation to discuss member feedback before advising the CII Group board of its conclusions.”
The PFS held a live online consultation with members organised by interim PFS CEO Don MacIntyre today at lunchtime. The PFS is also carrying out a survey of members to assess their views and carrying out other consultations via email.
Once the consultation with PFS members has ended it is expected that the PFS board will meet to consider a formal response to the CII’s plans.
It’s understood that the CII has not set a deadline to receive a formal response from the PFS in order to give the PFS board an appropriate amount of time to consider the plans.
In its invitation to the PFS online webinar today, the PFS told members: “You may be aware that for some time, the CII and PFS Boards have been working hard to resolve and reconcile a range of complex issues, which included independent mediation that was unsuccessful. On 21 December the PFS Board was notified that the CII had taken the decision to exercise its right to appoint three additional directors to the PFS board with the intention to add additional directors so that Institute Directors form a majority.”
A CII spokesperson previously told Financial Planning Today earlier this week: “The CII Group Board remains deeply committed to its PFS members and believes it is essential that they are consulted. CII staff have supported the development and distribution of the PFS member survey as part of their normal, professional service to the PFS board and members.”
