Justice for Equitable Life policy-holders

THE PROBLEM

Equitable Life ran into financial troubles in the late 1990s and early 2000s, and declared itself unable to meet its obligations to investors, some of whom were expecting "guaranteed" payouts. A Court even sanctioned the company's handling of the matter - up to a point. The debacle has had disastrous financial consequences for many people, who have formed an action group which believes the regulators failed in their duty to protect investors.

THE OBJECTIVE

The objective of the campaign is to restore as much as possible of the lost funds to the innocent policy-holders.

PROGRESS TO DATE

During the last Government the action group referred the matter to the Parliamentary Ombudsman, who reviews the actions of central government and its agencies, complaining that the regulators were guilty of maladministration. The group and its individual members understandably turned to their MPs asking for support. Nick and many other MPs campaigned vigorously for the investors to be compensated by the state. Nick took the issue himself to the Ombudsman and kept in touch with policy holders following the publication of the Parliamentary Ombudsman's report, which found in the policy-holders' favour and was scathing about the regulators' failings.

Despite the favourable ruling from the Ombudsman, the previous Government took months to respond and when it did it decided a judicial review would be needed before it could accept responsibility.

NEXT ACTION

The coalition Government has recognised that this matter needed more urgent action than the previous Government offered and is pushing forward to give the people affected by this a fairer deal.

A Government Bill was presented to Parliament on 22nd July 2010 that is designed to provide payment to those adversely affected by maladministration in the regulation of the Equitable Life Assurance Society before December 2001.

NICK'S ISSUE BRIEFING ON EQUITABLE LIFE