View more on these topics

Equitable in new compensation offer

Equitable Life is to put forward a new compromise scheme for the 70,000 former policyholders who have potential claims for misselling.

Policyholders say they should have been told before taking out a policy of the impending guaranteed annuity case.

Equitable predicts it will have to pay out will be between £40m and £75m following the delayed publication of the report – ordered by the FSA – by B&W Deloitte into the misselling claims. The report found the company&#39s performance was worse than its peers between July 200 and February 2002, suggesting some policyholders may have suffered financially. Equitable had already put £120m aside to meet the costs.

The new compromise agreement is effectively a creditor scheme, subject to both court and FSA approval, and requires the support of 50 per cent of affected policyholders by number and 75 per cent by value.

Only those who left Equitable after the House of Lords&#39 judgment in July 2000 and before the effective date of the compromise in February 2002 are eligible. Policyholders who stayed with Equitable signed away their rights to misselling compensation after the first compromise agreement.

Equitable Life chief executive Charles Thomson says the new compromise aims to provide a swift and costeffective alternative to the courts.

Equitable Members&#39 Action Group chairman Paul Braithwaite says: “This report was delayed to save embarrassment for the board and the FSA about the shabby terms of the original compromise agreement. The FSA and Treasury are desperate to keep the society afloat to avoid the spotlight falling on their failures.”


Merrill Lynch Investment Management – Growth & Income II (7 Year Term)

Monday, September 30 2002 Type: Capital protected bond Aim: Growth or income linked to the performance of FTSE 100 index Minimum investment: £7,000 Place of registration: Dublin Investment split: 100% linked to performance of FTSE 100 index Guarantee: Capital returned in full provided the index does not fall by more than 40% Yield: Up to […]

SVM Asset Management – UK100 Select Fund

Tuesday, 1 October 2002 Type: Oeic Aim: Growth by investing in large-cap companies Minimum investment: Lump sum £1,000 Investment split: 100% in large-cap companies Isa link: Yes Pep transfers: Yes Charges: Initial 3.95%, annual 1.25% Special offer: 0.95% discount on initial charge Offer period: Until October 17, 2002 Commission: Initial 3%, renewal 0.5% Tel: 0800 […]

Fresh thinking

Between 1988 and 1995, I contributed to a personal pension plan. I paid in both a regular monthly amount and a series of lump-sum payments. I am now able to recommence making contributions but I am unsure as to whether I should restart my plan or start a new plan. Which should I do? Personal […]

Non-partisan policy urged for pensions

Labour MPs, the ABI and product providers are urging politicians to work together to sort out pensions, saying if they cannot, then responsibility for pension policy should be removed from the political system.At a fringe meeting at Labour&#39s conference in Blackpool this week, ABI director general Mary Francis said pensions would be better served if […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


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 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