The PFS also reported its operating expenses in 2023 stood at £8.96mn, almost £1mn more than what it was the previous year (2022: £7.99mn).
The rise in expenses was attributed to the increase in central recharge costs from the CII. The central overhead charge in 2023 was £5.99mn (2022: £3.83mn) an increase of £2.16mn, which included an exceptional charge of £1.24mn of non-routine expenditure which supported central capital expenditure and members' qualifications.
In a CII video Q&A interview in August last year, former CII chief executive Alan Vallance was asked: "Why have former PFS member directors said that the CII group actions are purely motivated by money?"
In response, Vallance said: “I understand why people have said that, but that was never an issue for us for the institute. The reserves, the cash held within the PFS company, is within that company.
“It’s not something that would be transferred to the institute. So it’s simply not something we would consider.”
He also went on to say that on the PFS board, the CII did not give its appointed directors instructions on how to act, adding that they were told to act in the best interest of the PFS.
In another email seen by FT Adviser where Helen Phillips, CII chair, was responding to a concerned PFS member, she said: “I support the recent appointment of new institute directors to the PFS board. They collectively provide much better access to the resources and systems that the PFS needs to build its offer to members than it has had for quite some time.
“I'd encourage PFS members to see that much more a cause for excitement and optimism than investigation. That is certainly the way that I see it.”
Walker is now calling on PFS members to attend the CII AGM on October 24 and make their views and concerns known.
One way forward, according to Walker, could be a change to the articles of association, which he says is "not fit for purpose".
For this to happen, it would need 75 per cent of member vote at an AGM.
While he feels the only tenable solution would be for a managed separation of the PFS and the CII, he says that a positive outcome could still be possible where the CII and PFS retain some sort of relationship based on the services and the courses the institute provides.
The CII has previously said it remains deeply committed to its PFS members and wants to see the PFS "flourish" as a professional membership body.
Ima Jackson-Obot is deputy features editor at FT Adviser