Equitable Life compensation enters “comparison” stage
The Equitable Life compensation saga continues with the publication of a new report commissioned by the Government.
The life and pensions provider came close to collapse in 2000 when it could not deliver the returns it had promised.
At the time, over one million savers lost up to 50% of the value of their pension funds.
The issue of compensation was eventually given over to the Parliamentary Ombudsman, Ann Abraham, whose report accused regulators of comprehensive failures and the Government of maladministration.
It also recommended the establishment of a scheme to consider individual claims for compensation.
In January, the Government revealed the details of such a scheme, which allowed awards on a hardship basis and therefore left the bulk of Equitable policyholders out in the cold.
Sir John Chadwick was then appointed to the case and in his interim report, published this week, suggests that compensation is based on a comparison of the returns achieved by similar investments with other pension providers.
Meanwhile, A High Court case brought by the Equitable Members’ Action Group began last month.
The group, which represents around 21,000 policyholders, is demanding a judicial review of the Government’s decision not to implement in full the recommendations made by Ms Abraham.
Category: Companies News, Insurance News
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