Mortgages.scot

If you are in the mortgage industry you are likely to use the London Institute of Financial Services (LIBF) to study for the CeMAP qualification, the industry standard qualification for mortgage advisors. However, there is an alternative. The Personal Finance Society (PFS) offers a similar qualification. Both offer a wide range of courses and support for members. Personally, I think they are both good at what they do although I have chosen LIBF as they offer the specific training I am looking for.

The PFS has a parent company, the Charted Insurance Institute (CII). A similar company to the PFS focused on the insurance industry.

What has happened?

Just before Christmas the CII announced it was going to take control of the PFS board as a result of it identifying poor governance at the company. Claims that have been rebuffed by a number of PFS staff have resulted in resignations.

The Timeline so far

Here are some key dates so far to understand what has happened and how fast this appears to have moved.

• 21.12.2022 - CII announces a takeover of the PFS board.
• 05.01.2023 - Up to this date there are various meetings and announcements without progress or agreement.
• 06.01.2023 - PFS President resigns.
• 09.01.2023 - Chair of the PFS financial planning panel resigns.

Claims of intimidation and bullying from the CII are made by a number of PFS members. Talks do appear to be ongoing but there does not appear to be any sign of agreement.

What could happen?

It's too early to say. Many are discussing other options. I personally have heard of people switching to an alternative organisation, the CISI seems to be the most popular. A major draw to the CISI is that they were given consent from the Privy Council in 2021 to award Chartered designation to financial planners.

Others are suggesting a new body could be formed to replace the PFS. Although that could offer positives it is seen as unlikely. Creating a new organisation requires time, money, desire and so on. Who has that? Plenty I am sure but enough willing to make it happen? Unclear right now.

The comments and commentators through all of this are offering views but the reality is nobody knows the outcome of the crisis between the CII and PFS. Until they resolve their issues and we understand how this moves forward, everyone will watch with interest before switching to another organisation or even creating their own PFS replacement.

Should you be worried the PFS is going to fail?

All I can give you is my personal opinion. That is not yet! The PFS has already changed as a result of resignations. Ultimately they can be replaced. I honestly don't think it will come to the point of failure.

The PFS has at least 40,000 members, it is not the largest organisation out there but if you look at its size vs the industry segment it represents then it isn't a small number.

It's early days and there is still little known about discussions taking place to resolve the issues. So it really is wait and see!