Equitable Life
Many of my North Devon constituents have contacted me having lost money in investments with Equitable Life. I have been among many MPs who have campaigned in recent years for such investors to be compensated by the state, because of the shortcomings in the regulation of Equitable Life.
My colleague Dr Vincent Cable MP worked closely as Lib Dem shadow chancellor with the Equitable Members' Action Group (www.emag.org.uk). This culminated in the Parliamentary Ombudsman publishing a second report into Equitable Life in July 2008, after which the Lib Dem Treasury Team tried repeatedly to secure an urgent debate in Parliament on this issue before the summer recess.
In the European Parliament the Lib Dem MEP Diana Wallis authored a report, adopted in June 2007 after an 18-month inquiry, which reinforces the Ombudsman's report from a European perspective. This report was vigorously followed-up by MEPs with Britain's Ombudsman accepting an invitation to attend the European Parliament's Petitions Committee.
Despite the favourable ruling from the Ombudsman, the previous Government took months to respond and when it did it decided a judicial review would be necessary before it could accept responsibility.
The anger expressed by policyholders is entirely justified. Although much of the mismanagement of Equitable Life predated the Labour Government, it had nevertheless been very anxious to avoid the conclusion that maladministration was involved - bringing as it does the potential for compensation claims and embarrassment to civil servants.
The Coalition Government, in recognising that this matter needed more urgent action, is pushing forward to give people affected by this a fairer deal.
A Government Bill was presented to Parliament on the 22nd July 2010 that is designed to provide payment to those adversely affected by maladministration in the regulation of the Equitable Life Assurance Society before December 2001.
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