View more on these topics

Equitable action group rejects Chadwick review

Equitable Life policyholder campaign group EMAG is withdrawing from working with Sir John Chadwick’s review of compensation for policyholders, labelling his work a “Treasury stitch up”.

EMAG accuses the Treasury of “orchestrating a cover up” which seeks to negate four years of work by the Parliamentary Ombudsman.

It also slams the Government for choosing the actuaries Towers Watson to advise Chadwick and allowing them to select their own peer review panel to endorse their calculations.

General secretary Paul Braithwaite says: “The latest interim report from Sir John Chadwick shows that the Treasury is attempting to retry the case, using actuarial sophistry to distort the figures, instead of accepting the recommendations of compensation found by the Parliamentary Ombudsman and upheld by the High Court.

“The logical conclusion of this sham process is that the Government will deny all obligation to compensate policyholders for the damage done by serial maladministration and only paltry discretionary payments will be made on the basis of charity, not justice.”

He adds: “The consequence of a series of dubious assumptions piled one on another is leading Sir John Chadwick towards, surprise surprise, a conclusion that nothing was wrong in the 1990s after all. It would be farcical if it wasn’t so dangerous to the well-being of the victims of this scandal.”

EMAG won a High Court challenge last year, which found the Treasury’s brief to Chadwick unlawful and forced the remit to cover all investments back to 1991 rather than 1999.

Braithwaite says: “While the High Court judges were clear about the need to treat the Ombudsman’s report as a whole, the Treasury-hired actuaries are choosing only the bits they want and justice is going out of the window.

“We contributed extensively and in good faith to Sir John Chadwick but it’s apparent that he only has ears for the Treasury’s submissions. Yet again, actuaries are being used to obfuscate and deny the real losses their colleagues presided over. The sooner the general election sweeps away this mockery of a process, the better.”


Advisers get a warning over relying on platforms

The FSA has warned advisers not to be over-reliant on platforms. In the Financial Risk Outlook 2010 paper published last week, the FSA says growth is expected to continue, with 50 per cent of new investment business transacted through platforms. It says firms should not become overly dependent on a platform’s services and should offer […]

Vanbrugh fund off to flying start with deft choices

Hawksmoor Investment Management’s Richard Scott and Daniel Lockyer have attributed the first year’s performance of their Vanbrugh fund to asset allocation decisions. The fund is second out of 144 funds in the IMA cautious managed sector in its first first year, at February 18. It returned 41.5 per cent compared with the sector average of […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery


News and expert analysis straight to your inbox

Sign up


There are 5 comments at the moment, we would love to hear your opinion too.

  1. The despicable deceptions and refusal to accept what has already been PROVEN, is hard to begin to comprehend. Money has been made readily available to others but not to those who have sufferred as a direct result of government incompetence. I would not vote for this government if my life depended on it.

  2. The Government can ignore the ruling of the
    Parliamentary Ombudsman, wasting a large amount of Public Money in the process.

    But what of the FSA, the Tresury puppet, charged in law to protect the consumer?

    Paul is right the quicker an election the better.Twenty BNP MP’s should concentrate the minds of our disinfranchised current occupants

  3. I lost the logic at the last sentence. There are pleny of reasons for voting this govt out, but plenty more acceptable alternatives than the BNP

  4. There seems to be no low that the present govenrment will not stoop below, to avoid paying out to the Equitable Life claimants. The company was regulated and like all insurance companies it was required to submit actuarial returns to the Government Actuary. Clearly the Actuary must have been short of toilet paper for a number of years because the returns can never have been studied properly.

  5. Incompetent Regulators Awards Team 16th March 2010 at 3:21 pm

    Nasty Bitchy Labour at their best again!!!

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 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