This is coupled with a failure of Institute Directors to attend PFS Board meetings, threats to make PFS Board meetings inquorate, ‘flood’ the PFS Board with Institute Directors, and to ‘de-register’ the PFS.
It is well documented that the CII has made numerous requests to the PFS for funds. In March 2021, the PFS Board was approached by the then CII CEO with a request firstly to de-register the PFS and secondly for it to act as guarantor to a Credit Facility provided by a leading bank.
The information provided by the CII when they were seeking the PFS Board to act as guarantor to the loan was in my view woefully lacking and insufficient to make a decision.
Despite the PFS Board at that time requesting supporting information to be able to review and consider the proposal in detail, the information provided was either contradictory, inconsistent or incorrect.
Ultimately leading the then PFS Board with no option but to decline the proposal in line with their duties to the PFS.
In response to this, and despite negotiating in good faith with the CII, the PFS Board has since been party to numerous threats from the CII to flood the PFS Board, coupled with, in my view, bullying and intimidation tactics.
This is in what I believe is an attempt by the CII to access the PFS’ reserves, all culminating in the unilateral and in my view, autocratic actions taken by the CII on 21st December 2022.
I firmly believe the reasons for this behaviour from the CII is because, as can be seen in their published accounts, the CII is running out of money. Their latest set of published accounts demonstrate that their overall financial position has been deteriorating year on year.
From strength to strength
The PFS has gone from strength to strength over recent years. Since RDR, the financial planning profession has grown, evolved and seen a significant raising of professional standards.
The PFS has been a key driver of this; PFS member numbers have increased from all sectors of financial planning such as advice, paraplanning and compliance, raising the profile of our profession and increasing the revenues of the PFS and subsequent reserves.
In my view, the same cannot be said of the CII. As the delivery of insurance products to consumers has evolved and innovated over the last ten years, the CII have arguably failed to keep up with these changes.
It is my view that a disastrous combination of arrogance, complacency and misguided business priorities by the leadership of the CII has potentially led to a catastrophic failing of the CII.
