View more on these topics

Action group wants a new review

The Equitable Members&#39 Action Group has criticised Treasury Financial Secretary Ruth Kelly for saying the Penrose report does not blame regulators or recommend compensation.

It says the remit set for Lord Penrose precluded him from blaming the regulator or recommending compensation and believes Lord Penrose should be asked to complete a further study focusing on compensation.

Law firm Clarke Willmott, which has represented Equitable policyholders, is also unsatisfied. Financial services partner Robert Morfee says the regulator “shamelessly” encouraged investors to vote for the compromise scheme of 2002 while policyholders were told by the salesforce that the with-profits fund was blue-chip with better than average prospects.

Emag general secretary Paul Braithwaite says: “For six years, Gordon Brown and his coterie have fully understood the depth of problems at Equitable Life, yet they have used every trick in Sir Humphrey Appleby&#39s book to cover up and to avoid compensating for what is now proven to be regulatory failure.”

Morfee says: “The question is not whether the regulators owe compensation, but how much. The regulators failed to ensure there were reserves.”


Regulatory tools should prevent another Equitable says Penrose

FSA proposals aimed at reforming regulation of the life insurance industry could provide the necessary tools to prevent another Equitable Life from occuring, Penrose&#39s report says. While the regulator has “sought to anticipate many of the lessons that might be drawn by this inquiry,” Penrose says the tools it may design as a result will […]

Bedford to build up quality advisers for Worldwide

Former Sesame network sales director Andrew Bedford has been appointed non-executive chairman of IFA Worldwide Financial Planning. Bedford, who is currently chairman of 3D Communications, will cover media relations, brand development, provider relations and strategic development at WWFP. He will also be responsible for introducing high-quality advisers to the business over the next two years, […]

Tories call for investigation into Government actuaries

The Shadow Chief Secretary to the Treasury Howard Flight is calling for a full investigation into the operation of the Government Actuary&#39s Department after the publication of the Penrose report yesterday. He says the degree and extent of the department&#39s maladministration must be established so that the question of compensation can be properly addressed. And […]

&#39Author of its own misfortunes&#39

Excerpts from Treasury Financial Secretary Ruth Kelly&#39s statement to the House of Commons on Monday. “The Government sympathises with the plight of policyholders who have suffered much worry and distress over the past four years and who have seen significant reductions in their expected income in retirement….” “Lord Penrose&#39s central finding is that principally, the […]

Tax-free gains? That can’t be right, can it?

When he was Chancellor of the Exchequer, George Osborne made several changes to the way in which income is taxed. Personal allowances were increased significantly above the rate of inflation; a starting rate band was introduced for savings income and, with effect from 6 April 2015, this was assessed at 0 per cent. In addition, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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 thought leadership.

    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