The Personal Finance Society (PFS) has voiced its shock at parent body the CII’s move to takeover its board by appointing three new directors yesterday.

Retirees wanting a comfortable retirement and enough money to pay for later life care need to build up around £470,000 in retirement wealth due to the cost of living crisis, according to a new report.

In this exclusive column for Financial Planning Today magazine, Dr Matthew Connell, director of policy and public affairs at the Personal Finance Society, unravels the FCA's new Consumer Duty.

Financial Planning and DB software provider O&M Pension Solutions has launched a service to help adviser with retrospective DB transfer analysis.

The Personal Finance Society has blamed a lack of CII directors attending for its decision to abandon an Emergency PFS board meeting today.

A spokesperson from the Chartered Insurance Institute (CII) has accused the Personal Finance Society (PFS) of breaching a confidentiality agreement as the row between the professional bodies continues.

Many Financial Planners have reacted negatively to the move by the CII this week to take over the PFS board, with several saying they may re-evaluate their membership.

The Chartered Insurance Institute has denied that its move this week to take over the PFS board was about taking control of the PFS's near £20m in reserves.

The FCA has extended its suspension of the requirement for firms to issue 10% depreciation notifications to investors.

Debbie Mitchell, PFS member and CII group board member, writes exclusively for Financial Planning Today on why she believes the CII group board decision to intervene at the Personal Finance Society, and effectively take control of the PFS board, is the right one. 

If you’re surprised to learn that a PFS member sits on the CII Board, then hold on to your hat – there are three of us! Three PFS members, each of whom has been deeply concerned about the governance failings of the PFS board over recent months.

I’ve been reading the views of other PFS members since the announcement and I’m disappointed that some of my fellow professionals are turning to conspiracy theories and myths rather than considering the facts. Simply put, the CII Group Board has called out poor behaviour and governance on the PFS Board.

The list of failings is sadly long: 

• a failure to act in line with the Articles of Association approved by PFS members;
• a lack of collective decision making by the PFS board;
• the exclusion of Institute-appointed directors from PFS board meetings and decision-making processes;
• the inappropriate establishment of at least one sub-committee, which is directing work without proper authority from the PFS board or input from the CII as required under the PFS board’s Terms of Reference.
• a group of PFS board members pursuing actions without full board authority that have led to significant expenditure on external advisors that is substantially above agreed limits;
• the PFS board seeking to exclude the CII Group Audit and Risk Committee from oversight of audit and financial statements;
• the PFS board reappointing expired board members by co-option rather than rotating the membership of the board.

Faced with the evidence, which I have scrutinised, it would have been a dereliction of my duty not to act with my fellow CII board members.

These are the sorts of failures that I am convinced the three Institute Directors joining the PFS board will help address.

And they are not there to run rough-shod over the existing members, who have always shown great passion and commitment to their profession. Suggestions of that nature are a slight on their character, professionalism, expertise and experience.

Yes, they are Institute appointed, but – just like me – they are of their own mind and I am sure will rapidly address the CII board’s concerns, and I hope now yours.

I’ve also seen a lot of myths being peddled in recent days. Like, the CII board is doing this to deregister the PFS. It is not. Or that the PFS can exist without the CII Group. It can’t. Or that this is just a cash-grab. Nope. PFS assets will continue to be used to serve PFS members, as has always been the case.

So, I’m appealing to my fellow PFS members to take a moment over Christmas. A moment of reflection brought by happier times, with friends and family, to consider the necessity for the right sort of change.

I strongly believe the CII Group of companies is a family too, and we can employ our high professional standards to work through this next period to a 2023 that sees good PFS board governance restored and the PFS thrive once again.

Debbie Mitchell is a PFS member and CII group board member. She is the owner of IFA firm Atholl Scott Financial Services in Aberdeen.