MPs urge the government to provide full & # 39; to offer compensation to investors who have been left out of the wallet due to the near collapse of Equitable Life
Jeff Prestridge, Financial Mail on Sunday
Sixty conservative MPs urge the government to complete & # 39; compensation to nearly 900,000 investors who are still being held out of pocket due to the near collapse of Equitable Life in 2000.
In a strongly worded letter to Chancellor Philip Hammond, says Bob Blackman, Tory MP for Harrow East, it is time for the government to draw a line by finally settling the long-standing injustice of this scandal. He goes on to say that a & # 39; honor debt & # 39; due to victims of the Equitable scandal.
The letter is approved by Tory members of the parliamentary group Justice for Equitable Life policyholders, of which Blackman is co-chairman.
Scandal & # 39 ;: The letter from the MPs to Chancellor Philip Hammond
Equitable, a mutual insurer, was popular with investors in the eighties and nineties because of his refusal to pay commission to advisers, instead selling through his own sellers.
It advertised heavily on TV to promote the fact that every cent of customers was invested – in pensions or with profit policy. It is an Equitable Life, Henry, & # 39; told the ads. But still, a mix of disastrous management, promising investors, a lawsuit and lax regulation combined to hit a hole in finance. In 2000 the company was closed to new customers and it was only saved by new management that suffered the value of customers' policies.
Although previous governments have paid compensation of around £ 1.3 billion for maladministration in the regulation of Equitable, it is well below the £ 4.3 billion in losses that the parliamentary ombudsman quantified in 2008.
Blackman now wants the balance to be paid and says it can happen without threatening the positive registration of the government of budgetary responsibility.
Paul Braithwaite, secretary of the action group of the Equitable members, says that Blackman's letter has the strength of feeling & # 39; shows that in Parliament remains the need for full compensation to the victims.