Martin Brook's letter regarding Equitable Life (Money Marketing, August 9) refers to the method by which Equitable Life apply the reduction.
Equitable Life have recently confirmed that the non-guaranteed fund will be reduced by a much higher percentage in order to reduce the overall fund by 16 per cent.
This could result in 40 per cent, 60 per cent or the whole sum.
If the reduction in the non-guaranteed sum is inadequate, the balance will come from the guaranteed fund.
Equitable Life have confirmed that if the member leaves within his contractual rights, that is, to buy an annuity or, say, drawdown, then the reduction to the guaranteed fund will not apply.
Furthermore, in Harry Katz's letter (Money Marketing, August 9) he refers to the Policyholders' Protection Act. The 90 per cent is only likely to apply to the guaranteed fund.
Clients have lost 16 per cent and potentially the balance of any of the non-guaranteed fund together with a further 10 per cent if they become insolvent.
Also, do we know how long it would take for the administrators to wind up the company's assets?
Could this exercise take years? How long could it be before our clients receive their share? The emotional issues are just as important as the financial issues.