View more on these topics

Abraham reopens Equitable inquiry with GAD warning

The number of IFAs able to get professional indemnity insurance has increased, according to figures from the FSA.

The monthly figures normally show that around 700 firms do not have cover but June&#39s figures showed a fall of nearly a third to about 500.

Aifa director of policy Fay Goddard believes the fall is due to restored confidence in the PI market as insurers are starting to understand the endowment position and are assessing the risk as minimal.

She says the fact that 80 per cent of cases going to the Financial Ombudsman Service find in favour of the IFA is reaching the PI market and that insurers are less sensitive.

Goddard says the slow resolution of the splits&#39 deb-acle is another reason that the market is less nervous.

She says: “In the last few weeks, people have started to get better terms. This is a sign of restored confidence from PI insurers and is good news as a more open market will drive competition.”

Parliamentary Ombudsman Ann Abraham will reopen her investigation into Equitable Life, raising the hopes of policyholders looking for compensation from the Government.

However, Abraham warns that she will not hold an investigation if the Government den-ies her request to extend her remit to include the Government Actuary&#39s Department.

She says that the inclusion of the GAD is crucial to determine whether there was maladministration by the prudential regulator.

The investigation will examine the roles played by the Treasury, the Department of Trade and Industry and the GAD which were responsible for regulating aspects of Equitable before December 2, 2001 when the firm closed to new business.

Abraham has already vindicated the FSA which reg-ulated Equitable between 1999 and 2001, finding no evidence of maladministration.

If the investigation finds fault with the regulators, Abraham could call for compensation to be paid.

The Government has so far made no commitment to honour any recommendations made by Abraham but the Conservatives and Liberal Democrats have said they will support her conclusions if elected.

Abraham has performed a U-turn after concluding at the end of her original report in June last year that she would not look at Equitable again.

Equitable Members&#39 Act-ion Group chairman Paul Braithwaite believes Abraham has a difficult task ahead and says he is concerned that she has not yet set a date when her inquiry will start.

Braithwaite says: “The FSA and Treasury were opposed to the reopening of the inquiry and the Parliamentary Omb-udsman will have a difficult time investigating these leading suspects.”

Equitable chief executive Charles Thomson said: “Our policyholders will be pleased that a fresh, independent rev-iew is under way that can det-ermine whether the regulators were at fault and Government compensation should be payable.”

Recommended

2.4m homeowners potentially liable to IHT says Halifax

The number of homes in the UK valued at more than the inheritance tax threshold increased by more than 500,000 in the first half of 2004 according to Halifax financial services. As a result, 2.4m homeowners are potentially liable to IHT. The 12 per cent increase in house prices in the first half of the […]

Will the LIA feel at home on the Sofa?

A little bit of trade body history is being made in financial services as the LIA, born in 1972, and Sofa, born in 1992, propose a merger. The way ahead will not be easy. First,the LIA is twice the size of Sofa and, as such, might be considered a senior partner in the merger – […]

&#39Regulator must ensure change benefits public&#39

The Financial Services Consumer Panel is calling on the FSA to look at the overall impact of the retail reforms it is introducing this year to ensure they benefit the public. Speaking at the FSA&#39s annual public meeting last week, FSCP chairman Ann Foster pointed to the many changes the regulator is introducing to the […]

Cheltenham& Gloucester – Three Year Fixed Rate

Type: Fixed-rate mortgage Fixed term: Until September 30, 2004 Fixed rate: Up to 95% of valuation &#45 house purchase 5.99%, remortgage 6.24%, up to 90% of valuation &#45 house purchase 5.74%, remortgage 5.99% Minimum loan: £5,000 Maximum loan: Up to 95% of valuation subject to no maximum Income multiples:Up to three times principal income plus […]

Thumbnail

Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com