An adviser has called for an investigation into the decisions that have led to multiple CII directors being appointed to the PFS board.
Tim Morris, IFA at Russell & Co Financial Advisers, emailed chair of the CII board, Helen Philips, and Ian Callaghan, president of the board this week (October 9) asking for an “immediate investigation”.
In the email seen by FT Adviser, Morris explained how the appointment of multiple CII executive directors to the PFS board had “eroded the trust in the CII” and had caused increasing concerns across the membership of both bodies.
Morris wrote: “Considering the significant reputational damage caused by each separate action, I am sure there are sensible and rational explanations for each, and they weren't taken lightly.
“However, the most recent appointments are employees and executive directors of CII, and therefore, in the words of the former CII-appointed chair of the PFS at the 2023 AGM, CII employees ‘...obviously have found it very difficult to take an independent view’ when sitting on the PFS board previously,” the email went on to say.
Last week, FT Adviser reported that the CII had made four appointments to the PFS board “to ensure it has access to the most accurate and timely information when taking decisions on behalf of members".
When FT Adviser contacted the CII about the appointments, it said it had become “apparent” the PFS would benefit from having more CII executive members on its board.
The appointments included group chief executive Matthew Hill as well as Trevor Edwards, Mathew Mallett and Gill White, who make up part of the executive leadership team.
Morris had also emailed the four newly appointed board members, seen by FT Adviser, voicing his concerns about the conflicts of interests that CII employees may face, specifically when it came to the financial dealings between the two separate legal entities.
He said: “I would be grateful if you could confirm that you are comfortable with your absolute fiduciary duty to the PFS and its objects, and therefore its membership.
“I would also appreciate it if you could explain how you intend to manage the conflicts of interest that will no doubt arise from your dual roles.”
When asked what his motivations were behind sending the email, Morris said he was “fed up” with the constant battle between the CII and PFS.
“They need to focus on their actual purpose - to support their members,” he added.
CII responses
Morris received a reply from Hill, who said the adviser had raised “a good set of questions”.
Hill said: “Personally, I think the best way of answering them is to demonstrate that both the PFS and CII are really starting to motor, and that is what I have signed up for.
