The Chartered Insurance Institute (CII) has appointed three institute directors to the Personal Finance Society (PFS) board, with immediate effect.
Currently the PFS board is made up of five PFS and two CII directors. The institute said the move will “equalise” the board of its subsidiary.
The three newly appointed directors are:
- Sarah Howe, former chief executive of Harpenden Building Society and ex-independent chair of the consumer panel at Openwork;
- Neil Watts, former board member of the Office of the Qualifications and Examinations Regulator (Ofqual) and complaints committee member at the Independent Press Standards Organisation (Ipso); and
- Azlina Bulmer, former director of international at the Royal Institute of British Architects, current associate non-executive director at Harrogate and District NHS Foundation Trust and existing CII membership and engagement director.
But the PFS was completely blindsighted by the move as it was made aware of the appointments minutes before the membership and the wider profession on the morning of 21 December 2022.
PFS president Caroline Stuart said: “The decision by the CII board, which was announced to our board, the membership and the wider insurance and personal finance communities [yesterday] morning, came as a huge shock.
“Having not informed our board of its intentions, the CII has acted unilaterally and without PFS leadership or member consent. We will take the right steps available to us to consult PFS members as to their views on if such a move by the CII is in PFS members’ and the PFS’s best interests.”
Failures
The move follows an exclusive interview International Adviser did with PFS interim chief executive Don MacIntyre in November 2022, who said the relationship with the CII was “moving in the right direction”.
Helen Phillips, CII Group chair, added: “This is not an outcome the CII Group board wanted or pursued. The CII team has worked hard for many months, initiating independent mediation, and responding to the PFS board’s demands diligently, professionally and with immense goodwill.
“Therefore, it is deeply disappointing that independent mediation has failed, and serious and significant governance failures have arisen, which leave the CII Group board with no alternative but to take this action at this juncture and resolve matters without further delay.
“The CII Group board remains deeply committed to its PFS members. The PFS is a critical part of what we do and an essential voice for advice. Now more than ever, it is important that all our time, energy and resources are fully invested in building a stronger future, and delivering exceptional services, for our PFS and CII members.”
Alan Vallance, chief executive of the CII, said: “Sarah, Neil and Azlina all bring immense professionalism and exceptional experience to the PFS board. The newly composed board will continue to be mandated to focus entirely on protecting and serving PFS interests. The CII team will work with the new PFS board to embed best practice and establish the long-term governance arrangements that will ensure PFS members receive all the services and support they deserve without any further delay.”
‘Harmful decision’
Unsurprisingly, the CII’s move attracted a wave of criticism from both the current and former presidents of the PFS, with some accusing the institute of deliberately avoiding scrutiny and purposely undermining the Personal Finance Society.
Garry Hale, former president of the PFS (2012 – 2013), said: “I am shocked, stunned and angered that the CII has chosen today to take the harmful and cynical decision to announce its intention to ‘flood’ the PFS board with CII nominee directors.
“The timing of this on the eve of Christmas celebrations is a blatant attempt to avoid scrutiny, avoid CII/PFS member backlash, avoid journalists’ questions and prevent regulators and politicians from actively understanding or mediating the decision in the full knowledge that the majority of the members, sector journalists and regulators will be off work and with their families, in many cases for the first time in three years.
“I would urge all PFS members to speak out and raise any concerns they have about this potentially damaging move.”
Sarah Lord, ex-president of the PFS (2020 – 2022), added: “This is a deeply cynical move by the CII and the orchestration of the announcement that we have witnessed shows that this is a pre-meditated decision. I have until very recently been in conversations with the CII leadership and we have engaged in mediation at their request. The conversations were still underway.
“It is extraordinary that they have been so disingenuous. Acting in this way today, and in such an aggressive way, is likely designed to diminish the existing PFS Boards powers and undermine its forward-looking strategy. I will do all I can over the coming weeks to ensure the Personal Finance Society, its members and the professions interests are protected.”
The PFS now has 30 days to consult with its members, and an emergency board meeting will be called as soon as possible considering the current holiday period.
