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FSA denies Equitable report is facing delay

Confusion reigns over when the FSA&#39s 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&#39s 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

increasing sales.”

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


IFA reprieve on N2

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Edinburgh crosses into Malta

Edinburgh Fund Managers is to move into the Maltese investment market in ajoint venture with Maltese insurance provider GasanMamo Insurance Agency. The firm, which last week announced its £20m acquisition of PortfolioFund Managers, will provide the investment products for GasanMamo&#39s newlylaunched fund management arm, GasanMamo Financial Services. EFM&#39s managed growth portfolio will be the first […]

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Former EMX boss joins management consultant

Former EMX chief executive Caroline Lee has been appointed to the wealth management team at financial service management consultancy City Consultants. Lee headed EMX during the period the electronic investment fund trading service was launched.City Consultants provides services to the securities industry and has clients in the UK, Europe and US. Managing director John Rawlings […]


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