The dispute between the Chartered Insurance Institute (CII) and Personal Finance Society (PFS) must be swiftly resolved to move forward, according to PFS interim chief executive (CEO) Don MacIntyre but he added that “it could be argued the worst-case scenario has already happened”.
Speaking during a PFS member webinar on the ongoing dispute between the organisations - which saw the CII takeover the PFS board in a surprise move on 21 December - MacIntyre (pictured) pointed out that PFS member directors no longer form a majority of the body's board, leaving the CII in a stronger position.
He said: "It could be argued the worst-case scenario has already happened - member-directors no longer dominate. That is a speculative response on my part - whatever director is appointed to a leadership position has to be seen to be working in the best interests of that company.
"As it stands, everyday administrative processes are still ongoing. The board is addressing the crisis we are in - but it is not in the long-term benefit of the PFS to operate in crisis mode.
"We need to start focusing on important things such as engaging the FCA, we need to move on from this."
The CII said it took the action to appoint a majority of institute directors to the PFS board as a result of "governance issues" which had not been resolved. PFS board members refute the allegations and said during today's webinar (20 January) that they had not been shown any evidence to support the claims.
Past PFS president Sarah Lord and current adviser to the board said: "We have not been afforded the luxury or courtesy of any evidence in relation to governance failings. We have called for that evidence to be provided to the PFS board but we are yet to receive that evidence.
"I do not think it is good to have this played out in public. It is not in everyone's interest but we would like to see the evidence on the statements made."
A PFS member consultation which will be used to help formulate its response to the CII has been extended until 5pm on 27 January.
Speakers at the webinar encouraged members to share their views on the ongoing discord, which PFS board member Gordon Wilson said described as "abhorrent".
He said: "We find ourselves in a difficult position. We need to build trust and move forward, get round the table rather than this heavy-handed forcing of the issue which is quite difficult to deal with.
"We went to heads of terms [in the mediation process] and the CII walked away from it. The PFS has not been presented with any 'governance failings'. I have no idea what they are. We have volunteer directors doing their absolute best."
MacIntyre added: "It is essential that we get back to the table. It is important this situation comes to an end. I would call for both boards to come to the table. We need to bring an end to this so we can begin working and looking to the future and not in the rear-view mirror."
Lord said: "It is essential the PFS board is provided with evidence. We need to be given right to reply to statements that have been made. We refute those statements.
"For us all to move past this and move forward we need to get back round the table. We need to understand what the CII vision is for the PFS."
CII CEO Alan Vallance opened the meeting with a statement stating the CII had no intention of deregistering the PFS and while it was a "difficult time" for both bodies he wanted to move forward. However, before leaving the call before the open discussion began, he reiterated that governance concerns had not been addressed.
Lord said: "For Alan to publicly state they are not seeking to deregister the PFS is positive. There needs to be far more conversation between the boards. Meetings, where both boards sat down, happened last year and progress was being made."
Repercussions
The fallout from the power struggle has seen PFS president Caroline Stuart resign from her position, citing the impact on her health as one reason for stepping down. She said "pressure and stress has increased exponentially" due to the dispute.
On 10 January, PFS financial planning panel chair Alisdair Walker also left the organisation. He labelled the CII's actions as "disturbing".
Following the exit of Stuart, CII chair Helen Phillips said the board takeover was "not an outcome the board wanted or pursued", adding the governance failures it has accused the PFS of are "not baseless or without foundation".
