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Equitable proposes £1.5bn GAR cap

Equitable Life is putting together a £1.5bn package to cap its liabilities to its 90,000 guaranteed annuity rate policyholders.

The money would come from Equitable&#39s £25bn with-profits fund. Equitable argue that a capping of the liabilities would permit more adventurous investment and improve returns for all shareholders.

Equitable need 75 per cent of the GAR policyholders to agree to the plan which would allow its proposed deal with Halifax to go ahead, subject to court approval.

Halifax want to buy Equitable&#39s asset management business, administration systems and salesforce for up to £500m.

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