The PFS is to launch a major consultation exercise with members after they unexpectedly rejected two key motions at the AGM in Manchester yesterday.

The protest vote at the AGM, on the eve of the PFS National Conference today, took the PFS board by surprise but PFS directors have promised to engage with members to find a solution to their concerns.

PFS President Carla Brown told Financial Planning Today that the PFS board would soon launch a major consultation to understand why rebels voted against two key motions at the AGM.

Ms Brown said that the engagement could include surveys, social media, a survey, town hall meetings and direct discussions, with all options being considered. She also urged rebels to contact her and chair Christine Elliot to discuss their concerns directly.

In an unexpected move at the AGM, motions to accept the Report and Financial Statements for the society and reappoint the auditors were not passed.

Rebel members of the PFS have been campaigning for a protest vote from members to express their dissatisfaction with the way PFS parent body the CII runs the PFS.

About 200 people took part in the AGM out of a PFS membership of about 40,000. Days before the PFS AGM, PFS chief executive Don Macintyre unexpectedly quit after over two years as PFS interim CEO.

Ms Brown told Financial Planning Today the PFS board was in "listening mode" and would respond to all points of view.

She said that "nothing was off the table" and if the PFS members wanted an independent PFS the board would take that view forward but she said this could take years to implement and there were "pros and cons" in favour of it and against it.

She added, however, that the PFS board was ready for change and that could include staying part of the CII, becoming independent or joining another body. 

She said: "We need to find a way forwards and we now have a mandate for change. We need to look to the future."

The PFS and parent body the Chartered Insurance Institute have been at loggerheads for the past two years about the future direction of the PFS, its autonomy and the use of PFS reserves.

Ms Brown added: "The relationship has been difficult but the ideal solution would be for the PFS and CII to work together harmoniously. It would be much easier than setting off on our own."

The CII has said that an independent PFS, as some have called for, could take years to implement and the process could be difficult.

The PFS will hold its next board meeting on 4 December to discuss a way forward and consultation with members.

Christine Elliott, PFS board chair, told Financial Planning Today that the PFS pledged to engage with members until a solution to the dispute can be found.

She said: "This is the start of a step change in dialogue with the membership."

It is not clear what will happen to the two motions but the PFS will need to look at options to get them accepted.