He said: “All PFS members I have encountered over the past few weeks completely resent the CII attempts to de-register the PFS, along with the interference of the previously successful PFS strategy and structure, which had seen positive year on year growth post RDR.
“Most people were of course previously unaware of attempts to wind-up the PFS in 2017 and 2019, the first attempt being in the same year that the PFS introduced its first ever ‘Festival of Financial Planning’ which attracted a record 3,300 attendees.
“2017 was also the year which saw other key initiatives, including the launch of its second pro-bono consumer facing initiative, Forces MoneyPlan, for Veterans of our Armed Forces."
He noted that the final failed attempt came in June 2021 when the CII asserted that it had been left with “no alternative but to act decisively”.
At the time, the CII justified its attempt to take control of the PFS board by citing governance concerns.
It said “this is not an outcome the CII group board wanted or pursued” but Richards has said this highlighted the “contradiction of evidence based actions and threw the fuel of disbelief on the proverbial fire”.
“One way or another, everyone can see that control has been pursued for the past six years and such contradictory claims are making things worse.”
So what is next?
In Richards’ view, a number of solutions exist to remedy the situation but only if there is a “willingness to address the unprecedented reaction from members and the market”.
“Any solution is of course dependent on the CII being interested in pursuing a mutually agreeable and satisfactory outcome for all,” he said.
Richards said he has recently offered five possible avenues forward, one of which was to agree a fresh commitment to independent mediation but this time to include a representative panel from the membership.
His rationale for this was to allow for a greater level of member involvement, extended independent oversight and a greater level of transparency.
However, he noted that on reflection “if the first independent mediation broke down, perhaps the CII would not be prepared to enter into a second attempt”.
As a result of this, Richards now feels an independent review might be the only way forward to provide the clarity both boards are seeking.
“I mean a straightforward, inexpensive and relatively quick independent review of both the CII and PFS operations, finances and assessment of the claims each have publicly made based on evidence,” he said.
Another route forward in Richards opinion, would be a return to the status quo.
“Of course the simplest and most obvious solution would be for the CII to acknowledge, respect and value member feedback. They could demonstrate true professionalism and leadership by allowing the PFS to return to its original, autonomous and independent structure pre-July 2021,” he said.
