Confusion reigns over when the FSA's report into its handling of the
Equitable Life debacle will be published.
The Treasury says the report has yet to be completed but the regulator
says it is on track and the Government will decide when to release it.
The news comes as pressure on all parties involved with Equitable
continues to escalate following this week's massive cut in pension fund
Treasury economic secretary Ruth Kelly said in an answer to a
Parliamentary question last week “the review team is not yet in a position
to complete its report”.
But the FSA says there is no delay as far as it is aware and the report is
due to be completed this summer as originally announced in December.
Equitable has come under fire yet again from IFAs for mismanaging its
with-profits fund, leading to the cut in fund values. They claim it
overpaid bonuses and exaggerated fund values compared with the underlying
IFAs say the current extent of policyholder disillusionment will
jeopardise the chance of a guaranteed annuity rate compromise, which could
then put the next stage of the Halifax deal under threat.
Annuities Direct director Stuart Bayliss says: “This problem exists,
regardless of GARs. It is about ongoing mismanagement and exaggerating true
fund values. Efforts should be redoubled on the culpability of former
advisers and management.
“Declaring the final value was not about clarity or openness, it was about
FSA spokesman Andy Fleming says: “The review is expected to be completed
by the summer and publication is a matter for the Treasury.”
Fund values cut, p2