The Personal Finance Society (PFS) has accused the Chartered Institute of Insurance (CII) of acting unilaterally and without its consent in its attempt to take control of the organisation.
Health & Protection understands an emergency PFS board meeting will be taking place and that PFS hierarchy were not informed of the CII move prior to it being announced.
Yesterday the CII Group board announced it intends to appoint a majority of directors to the PFS board citing ‘serious and significant’ governance failures.
It plans to appoint three institute directors to the PFS board with immediate effect – a move past PFS presidents dubbed “cynical”.
PFS president Caroline Stuart revealed the decision by the CII came as a “huge shock”.
“Having not informed our board of its intentions,” Stuart continued, “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.”
Health & Protection understands the president and CEO of the PFS were only told of the CII’s decision at 9.46am yesterday.
According to a source, the CII also informed all of its members and those of the PFS of its move from 10.17am yesterday and hosted a press conference to make its announcement to coincide with the membership email.
The source added that it has subsequently come to light that a number of PFS members did not receive the notification at that time.
The source also claims the CEO and president of the PFS were not advised prior to the 9.46 am notification of the CII’s intention to takeover the PFS board with new directors nominated by the CII, nor were they invited to participate in the morning media briefing hosted by the CII.
The source further revealed that the event subsequently came to the president and CEO’s attention following enquiries from UK insurance media.
The PFS president and PFS CEO were not shown the communication between the CII and the PFS members or the news release issued to media before either was issued, or the content of a notice uploaded to the PFS website purporting to be from the PFS, they added.
Under the Articles of Association, the PFS has 30 days from the action declared by the CII to consult with its members and the source revealed the PFS will be calling an emergency board meeting.
Health & Protection has approached the CII for comment.
