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| Version 3 | Version 4 |
|---|---|
| Relief plan for Equitable victims | Relief plan for Equitable victims |
| (10 minutes later) | |
| A scheme to partially compensate some policyholders who lost money in the Equitable Life has been announced by the government. | A scheme to partially compensate some policyholders who lost money in the Equitable Life has been announced by the government. |
| The payments scheme will be aimed at those policyholders who suffered "disproportionately". | The payments scheme will be aimed at those policyholders who suffered "disproportionately". |
| Treasury minister Yvette Cooper apologised to those who had lost money after the society's near collapse. | Treasury minister Yvette Cooper apologised to those who had lost money after the society's near collapse. |
| The former appeal court judge Sir John Chadwick has been asked to advise on the form of the payment scheme. | The former appeal court judge Sir John Chadwick has been asked to advise on the form of the payment scheme. |
| "We agree there has been maladministration in several areas and that government action is merited," said Ms Cooper. | |
| We want to focus on those who have been hardest hit Yvette Cooper, Chief Secretary to the Treasury | We want to focus on those who have been hardest hit Yvette Cooper, Chief Secretary to the Treasury |
| "And I wish to apologise to policy holders on behalf of the public bodies and successive governments responsible for the regulation of Equitable Life between 1990 and 2001, for the maladministration we believe has taken place," she told MPs. | "And I wish to apologise to policy holders on behalf of the public bodies and successive governments responsible for the regulation of Equitable Life between 1990 and 2001, for the maladministration we believe has taken place," she told MPs. |
| Regulatory failure | Regulatory failure |
| More than eight years after the Equitable closed to new customers, the government has admitted that maladministration by some regulatory bodies was partly to blame. | More than eight years after the Equitable closed to new customers, the government has admitted that maladministration by some regulatory bodies was partly to blame. |
| EQUITABLE: KEY EVENTS January 1999: Equitable tries to abandon a guaranteed payment it can no longer affordJuly 2000: The House of Lords says Equitable must honour its original commitments, forcing the company to put itself up for saleDecember 2000: Equitable Life closes to new business after failing to find a buyerMarch 2004: Lord Penrose's report says the society was the "author of its own misfortune"July 2008: The Parliamentary Ombudsman says regulators failed to protect policyholders and calls for a compensation fund Timeline: The Equitable Life sagaWhat went wrong at Equitable? | EQUITABLE: KEY EVENTS January 1999: Equitable tries to abandon a guaranteed payment it can no longer affordJuly 2000: The House of Lords says Equitable must honour its original commitments, forcing the company to put itself up for saleDecember 2000: Equitable Life closes to new business after failing to find a buyerMarch 2004: Lord Penrose's report says the society was the "author of its own misfortune"July 2008: The Parliamentary Ombudsman says regulators failed to protect policyholders and calls for a compensation fund Timeline: The Equitable Life sagaWhat went wrong at Equitable? |
| This was highlighted in a critical report published last year by the Parliamentary Ombudsman Ann Abraham, who called on the government to establish a compensation scheme. | This was highlighted in a critical report published last year by the Parliamentary Ombudsman Ann Abraham, who called on the government to establish a compensation scheme. |
| However, it is not yet clear who will be offered any money, or how much. | However, it is not yet clear who will be offered any money, or how much. |
| Ms Cooper pointed out that the 2004 report by Lord Penrose had pinpointed the society's management as being mainly responsible for its financial problems. | Ms Cooper pointed out that the 2004 report by Lord Penrose had pinpointed the society's management as being mainly responsible for its financial problems. |
| And she told MPs that policyholders could not expect to be fully compensated for all their losses. | And she told MPs that policyholders could not expect to be fully compensated for all their losses. |
| Sir John Chadwick has been asked to advise the government "as swiftly as possible" on the extent of relative losses by the Equitable policyholders, the payments that might be due to any maladministration, and which groups of policyholders had suffered most. | Sir John Chadwick has been asked to advise the government "as swiftly as possible" on the extent of relative losses by the Equitable policyholders, the payments that might be due to any maladministration, and which groups of policyholders had suffered most. |
| "We want to focus on those who have been hardest hit," Ms Cooper told MPs. | "We want to focus on those who have been hardest hit," Ms Cooper told MPs. |