Equitable Life

At the request of a couple of constituents I attended the Equitable Life event in Parliament yesterday. The Group is still pressing for additional compensation. I have taken this up on many occasions with the government. The government’s  view is that they have given compensation to reflect the regulatory failures,  but the major cause of the losses lay with the company. I do not think the government has any plans to revisit the amount of compensation given. The government provided £1500 million of compensation in total. 38,200 annuitants received 100% compensation. 895,000 other policy holders received lesser amounts, which EMAG puts at 22%.

I am very willing to take up individual  cases if there are still outstanding matters about payment of compensation or new points relating to individual contracts that need attention.

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2 Comments

  1. NHSGP
    Posted October 12, 2017 at 5:10 pm | Permalink

    If you had regulated and demanded that ELAS book their liabilities on the books then the losses would have been stopped early.

    However, when it comes to the state pensions, the state hides those off the books, claim IFRS adherence, but ignore IAS 37.

    That’s exactly the same behavior as ELAS with exactly the same outcome.

    If you want to run though IAS 37 and why it applies ask away.

    But given your job history, I suspect you do know enough about reading a balance sheet.

  2. alan jutson
    Posted October 13, 2017 at 9:20 am | Permalink

    Yes the 38,200 Annuitants did get a reasonable settlement after a 10 year battle, but the hundreds of thousands who were investors and near to retirement, got virtually nothing.

    Having lost an amount which well into a reasonable five figure annual income for life on retirement, with a Guaranteed fixed Annuity rate of 12.5% on my fund (other Companies were offering the same at the time some 35 years ago) I received a lump sum of £535 in compensation for having to take the present market rates.

    Is this an Equitable settlement of compensation ?

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    John Redwood won a free place at Kent College, Canterbury, He graduated from Magdalen College Oxford, has a DPhil and is a fellow of All Souls College. A businessman by background, he has been a director of NM Rothschild merchant bank and chairman of a quoted industrial PLC.

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