Eq Life victims feel let down by coalition Govt
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The Equitable Members’ Action Group has hit out at the coalition Government after yesterday’s revelation that victims may only get a total of £400-£500m in compensation.
The news emerged yesterday in a report by Sir John Chadwick, a retired judge appointed by the former Labour Government to assess the extent of compensation the Government should pay.
Emag says Chadwick’s calculation that relative losses of between £4bn and £4.8bn should be reduced to final losses of £400m - £500m because some investors would have continued to put money into the firm even if they knew its true financial state is “utterly risible”.
The group say the coaltion Government allowed the Chadwick process to go ahead against “obsolete and entirely inappropriate terms of reference” taken from the Labour Government.
Emag general secretary Paul Braithwaite says: “That Sir John puts his finger in the wind and says we should not get more than 25 per cent of ’aggregated external relative loss’ (whatever that means) because we would all have continued to heap in our retirement savings in even if we had known the true state of Equitable Life is utterly risible.
“Chadwick’s report should never have been allowed to take centre stage after the coalition made a commitment to fair treatment.”
Braithwaite adds: “The coalition promised us swift, transparent and fair: One out of three is not good enough. Today’s treatment was not fair nor is the implementation proposed swift.”
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Readers' comments (2)
k g mason | 23 Jul 2010 9:44 am
well as thought i also agree that chadwick should have nothing to do with our situation if we get £500 it means we will have the grand total of £50 a year paid back and it is a proper discrace to be able to take money without concern from peoples pensions... and this SHOULD BE PAID BACK by the fsa
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Paul Greek | 23 Jul 2010 10:15 am
When the Pensions Review was on, the FSA and Government were merciless against IFAs, Life Offices and other financial institutions, in reviewing and recompensing clients for what they claimed was "pensions miss selling". Even IFAs who did not have any pension plans in that category still had to spend a fortune in time, etc, to review every pension just to satisfy the whims of the FSA.
Now that it has been shown that the FSA were at fault regarding Equitable Life, the Government is being extremely tardy in carrying out their review and recompense. What is good for the goose, should also be good for the gander, so therefore we should be pressurising the FSA and Government to complete their review and compensation. The first port of call for funds for compensation could be the needless bonuses paid to FSA executives.
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