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Eq Life compensation to be based on comparable funds

Equitable Life policyholders who lost money when the society collapsed may be compensated based on how their investments would have performed if they had been invested in a similar fund with another life office.

Sir John Chadwick who is leading the investigation into the ex-gratia payment scheme for investors has published his interim report today which suggests moving from a “report-based approach” he previously favoured to a “flexible approach”.

He says a flexible approach would give policyholders a fairer and faster result because it would eliminate the need for investigating difficult questions.

He says the flexible approach has the potential to cover all those who were policyholders during the period affected by the maladministration which the Government has accepted.

The report says: “It will measure the relative losses suffered in respect of the accepted cases of maladministration by reference to the position that policyholders would have been in if all their investments in Equitable Life products had been made in a comparator.”


Gross mortgage lending up 26%

Gross mortgage lending totalled an estimated £16bn in July, a 26 per cent increase from £12.7bn in June, according to the Council of Mortgage Lenders.


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