Equitable Life Decision Grossly Unfair

9.07.03

Kingston and Surbiton's MP Edward Davey today called the decision of the Parliamentary Ombudsman not to award compensation to Equitable Life policy holders 'grossly unfair'. Many residents of Kingston and Surbiton have contacted Mr Davey and attended his advice sessions to express their concerns and anger over the way they have been treated by both Equitable Life and the Government and were hoping that they would receive compensation for the huge sums that have been lost.

Edward Davey commented

"This is profoundly disappointing for many of my constituents and thousands of others around the country. It raises very worrying questions about what recourse individuals can have in the light of serious failure by Government regulators.

"If the Ombudsman is now saying that Government regulatory incompetence is simply one of the risks individuals have to bear in the preparation of their pensions and other savings, it will deal a very severe blow to the Government's hope of people saving voluntarily for their retirement.

"We still await the Penrose Report into the history of Equitable Life, but it already seems very clear that the Government, in its role as regulator, was inattentive to the point of negligence while Equitable Life mismanaged its affairs throughout the 1980 and 1990s."

The full text of report can be found at the Omdudsman's site.