The Personal Finance Society board is to investigate complaints from parent body the Chartered Insurance Institute that it has made a number of governance failings.
In an update to PFS members today, interim PFS CEO Don MacIntyre said the board would look into accusations by parent body the CII that there were several governance failings at the PFS.
The CII has complained that governance failings included the PFS setting up new committees without CII approval and holding meetings without informing CII directors who were entitled to attend.
The CII cited governance failings as one of its key reasons for intervening at the PFS board to take control of the body. The two professional bodies have been in deadlock over the issue and the future direction of the PFS since.
In a message to members today, Mr MacIntyre said the PFS had “formally received” the CII’s allegations on governance issues on 25 January and these will require “a detailed review.”
He wrote: “The PFS Board agreed in the 1st of February meeting to consider these allegations in a structured, methodical manner, in order to form its response.”
Mr MacIntyre also told members that the PFS board had now shared the views of members on the future of the organisation with the CII.
The PFS will now await a response from the CII board to its submission of the consultation results and a summary of findings. Financial Planning Today understands that the CII board will meet in the near future to discuss the findings of the PFS consultation and its own response to the findings.
More than 4,000 PFS members took part in the consultation.
Mr MacIntyre added that despite the, “ongoing activity between the PFS and CII Boards” there was a professional and dedicated team that continues to deliver services, and that all member events are proceeding as planned.
He added: “I also want to personally apologise for the unnecessary distraction that this has caused, and I will do my utmost to ensure that I focus on building a strong PFS delivering the services our members require. I will be sure to keep you updated as soon as I am able.”
The PFS has carried out an extensive consultation with members via a survey and webinars over the past two weeks. Thousands of PFS members have taken part but it is not yet known whether members have been united in their views. The PFS has declined to comment on the findings of its consultation or reveal a recommended course of action.
The PFS board met on Wednesday to discuss the findings of the consultation.
The two bodies have been in deadlock over a move by the CII to take control of the PFS, citing governance issues and other concerns about the direction of the PFS. As part of its move to take control of the PFS, the CII appointed three new CII directors to the PFS board effectively taking control of the PFS board via a majority of directors. PFS President Caroline Stuart resigned recently over the dispute and concerns about her health.
