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&#39IFAs would have averted Equitable debacle&#39

IFAs would have stopped Equitable Life carrying on its disastrous reserving and bonus policy, according to the Faculty and Institute of Actuaries.

The report says as Equitable did not sell through IFAs, it did not come under as much scrutiny as IFA life companies.

It says: “We believe this allowed Equitable to adopt some policies and practices which were not prevalent elsewhere in the life industry.”

But Equitable has hit back with an attack on the FIA for failing to find blame with its previous management and allowing the situation to develop.

The FIA says it had no powers to find fault but is recommending an external peer review of appointed actuaries. The FIA believes an independent actuary might have challenged Equitable&#39s practices.

But Equitable says this “merely appears to transfer responsibility from one actuary to another. We will ensure there is no whitewash”.

Under the FIA recommendations, an annual report on the company&#39s financial condition will become mandatory and will highlight any guaranteed liabilities. In addition, the appointed actuary should not hold the role of chief executive.

But Equitable says the recommendations only cover what a responsible actuary should take into account anyway.

Informed Choice managing director Nick Bamford says: “I do think Equitable would have been more in the spotlight. IFAs are a strong force for the consumer.”


Fine time for Revenue

More than £1.1bn will be paid to the Inland Revenue in fines this year as a result of miscalculated or delayed self-assessment tax returns, according to research from IFA Promotion.IFAP&#39s research shows fines for miscalculations made on tax forms will total £975m and there will be a fine of £98m for forms returned after the […]

Mutual friends to welcome each other&#39s members

Britannia and Yorkshire building societies are launching a branch-sharing initiative to allow their members to use either company&#39s branches.More than two million members of Britannia and 1.8 million members of the Yorkshire will be able to pay in or withdraw money free of charge from a range of savings and mortgage accounts at branches of […]

Health plan for seniors from Pinnacle

Pinnacle Insurance is launching a private health product aimed at the elderly market with cover starting from £1.50 per week.The Pinnacle Senior Health Cashback plan offers contributions to routine dental and optical costs and consultancy fees.Applicants under 80 years of age are guaranteed entry and no medical is required.Pinnacle director of new products Tony Claytor […]

Scot Prov members await windfall decision

Around 450,000 Scottish Provident members will this week find out which of their policies entitle them to demutualisation windfalls.For those whose policies matured between September 7, 2000 when the takeover was announced and August 1, 2001 when the business was transferred, membership will be re-conferred and compensation for loss of voting rights paid. Compensation will […]


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