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Equitable Life victims push for full compensation
Victims of the Equitable Life scandal and the board of the company are making a final attempt to persuade the government to pay full compensation.
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More FTSE charts & pricesby Daniel Grote on Sep 06, 2010 at 07:58
Victims of the Equitable Life scandal and the board of the company are making a final attempt to persuade the government to pay full compensation.
The Equitable Members Action Group (EMAG) is sending proposals to the government before a decision next month on how much victims will receive, according to the BBC.
The Equitable Life board has made a separate representation to financial secretary to the Treasury Mark Hoban MP calling for compensation.
Members of the group and the Equitable board want full compensation for victims, which have been put at nearly £5 billion.
But they could be offered just £400 million if the recommendations of Sir John Chadwick’s report are followed.
Parliamentary Ombudsman Ann Abraham has denounced Chadwick’s proposals as ‘unsafe and unsound’.
EMAG spokesman Paul Weir told the BBC: ‘The government should respect the parliamentary ombudsman's recommendations. It should dispose of the work of Sir John Chadwick, which we think is disgraceful. And they should pay proper compensation, not peanuts.’
The board of Equitable Life has called on the government to implement Abraham's recommendation to compensate investors for their 'relative loss' and said this figure should stand at between £4 billion and £4.8 billion.
'The new government could not have been clearer in it manifesto and its coalition agreement; it committed to follow the Parliamentary Ombudsman's recommendation,' said Equitable Life chief executive Chris Wiscarson. 'The persistent references to Sir John Chadwick's work severely undermines our confidence that government will deliver on its commitment.'
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6 comments so far. Why not have your say?
Private Investor
Sep 06, 2010 at 11:20
Chadwick was appointed by Gordon Brown's government and told to recommend as little compensation as possible. The reduction by 90% of the loss was completely arbitrary. The Parliamentary Ombudsman's report was thorough and independent and its recommendations should be accepted. That is the point of having a Parliamentary Ombudsman.
report thisTony Peterson
Sep 06, 2010 at 11:20
The outcome will determine whether we can regard government as an institution with integrity, or whether we should try to protect ourselves against it as we would against a thief. It was governmental regulatory failure that entitles Equitable Life victims to compensation. The last government shelled out over the failure of Icelandic banks.
report thisGeorge Hill
Sep 06, 2010 at 12:20
Blaming the government for "not regulating us strongly enough" is as pathetic as a criminal blaming the police for not catching him earlier. The real culprits are the incompetent management for getting this (hitherto) respected pillar of the UK financial establishmentinto the state it was.
report thisAnonymous 1 needed this 'off the record'
Sep 07, 2010 at 10:04
As a Prudential (ex Equitable Life) annuitant I would dearly like to see full compensation for the disgraceful lack of government regulatory intervention on behalf of all with profits Equitable Life policy holders. However can the Government afford to pay out £5bln when they are trying to cut expenditure over the next five years?
In the circumstances I would certainly be willing to have my compensation used to enhance my State Retirement Pension - this would enable the cost to be spread over my lifetime rather than being a one off outlay. How many other annuitants would accept such a proposal?
report thisTony Peterson
Sep 07, 2010 at 10:22
Excellent idea, Anonymous 1. I am in the same situation as you, and I would find full compensation spread through increased SRP far better than 10% compensation in a lump sum the government cannot afford.
report thisA jock strap
Sep 07, 2010 at 16:19
* When unaffordable unfunded state secor final salary pensions are cut by 50%
*When same pensions are fully actuarially contributed to by the beneficiaries
* When Quango bosses and overpaid GP's and other NHS staff have pay frozen/reduced to affordable levels
* When MP's expenses, especially the second home allowance is means tested
WHen state bankers bonuses are scrapped
Then maybe.......we ELAS abused pensioners should be considered to accept a reduction
BUT not until.
THEN WE SHALL HAVE A FAIR AUSTERITY BRITAIN as opposed to the buying of votes route Gordon Bigot Brown chose and only then should
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