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| Version 6 | Version 7 |
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| Relief plan for Equitable victims | Relief plan for Equitable victims |
| (about 1 hour 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 want to focus on those who have been hardest hit Yvette Cooper, Chief Secretary to the Treasury Who will get compensation? | |
| "We agree there has been maladministration in several areas and that government action is merited," said Ms Cooper. | "We agree there has been maladministration in several areas and that government action is merited," said Ms Cooper. |
| "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. |
| It is thought that more than a million of the 1.5 million people who had Equitable polices in 2001 have seen the value of their investments slashed, in some cases by as much as 50%. | It is thought that more than a million of the 1.5 million people who had Equitable polices in 2001 have seen the value of their investments slashed, in some cases by as much as 50%. |
| 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. |
| And the minister told MPs that any eventual payments would still have to "take account of the position of the public finances". | And the minister told MPs that any eventual payments would still have to "take account of the position of the public finances". |
| The announcement was welcomed by Conservative spokesman Mark Hoban who said it was "deserved justice". | The announcement was welcomed by Conservative spokesman Mark Hoban who said it was "deserved justice". |
| Management responsibility | Management responsibility |
| Ms Cooper pointed out that the official report by Lord Penrose in 2004 had pinpointed the society's management as being mainly responsible for its financial problems. | Ms Cooper pointed out that the official report by Lord Penrose in 2004 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. |
| The Equitable has been asked to help Sir John by passing over detailed information about the policies held by its investors. | The Equitable has been asked to help Sir John by passing over detailed information about the policies held by its investors. |
| The Ombudsman's report highlighted 10 different instances of mistakes by regulatory bodies in the course of supervising the Equitable between 1990 and 2001. | The Ombudsman's report highlighted 10 different instances of mistakes by regulatory bodies in the course of supervising the Equitable between 1990 and 2001. |
| Ms Cooper did not explicitly accept all the failings listed by Ann Abraham. | Ms Cooper did not explicitly accept all the failings listed by Ann Abraham. |
| But she did admit that the finances of the Equitable should have been scrutinised more thoroughly by the authorities between 1990 and 2000. | But she did admit that the finances of the Equitable should have been scrutinised more thoroughly by the authorities between 1990 and 2000. |
| And she said misleading statements had been made by the Financial Services Authority after 2001 which "may have caused injustice". | And she said misleading statements had been made by the Financial Services Authority after 2001 which "may have caused injustice". |