Members of the UK's Personal Finance Society (PFS) board have dismissed claims of governance failures made by the Chartered Insurance Institute (CII) as the power struggle between the two organisations continues into 2023.
The boards of the PFS and CII are at loggerheads after the latter attempted to take over the running of the former's board in an unforeseen move just before the Christmas break.
On 21 December, the CII announced it intended to appoint a majority of directors to the PFS board after long-running mediation over its future failed and "significant governance failures" emerged.
Past PFS presidents hit back at the claims in the following hours with Sarah Lord saying the move had obviously been long planned: "It is extraordinary that they have been so disingenuous."
In the saga's latest development today (5 January), a statement from the PFS board's member directors and co-opted advisers said: "We want formally to express our severe disappointment with the announcements made by the CII just before Christmas.
"In particular, we note that the comments made about governance failures and other failings by the PFS board are not true, and not supported by any documentary evidence. We remain committed to making a success of a member-led professional body working in the interests of its members. The CII actions and false statements have made that much more difficult."
The statement added that it was only right to give members a say in the future of the organisation.
"In our view, giving members a say is the right way forward, and we do not support the actions of the CII board to subvert the PFS constitution, and seek to outnumber the democratically elected board."
The PFS board members said the next steps should be:
- A survey to be issued to all members to enable the views of PFS membership to be gathered on the way forward
- A programme of webinars over the next couple of weeks to hear as many views as possible
- The calling of an extraordinary general meeting in accordance with the articles of association in the next two weeks.
They added: "We will work to deliver this and urge all members to get involved and provide their feedback and view on their PFS before the end of the consultation period on 19 January 2023."
Read more: Everything you need to know about the PFS/CII power struggle
