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Government establishes Equitable Life commission


The Independent Commission on Equitable Life Payments has issued a call for evidence on how funding to non with-profits annuitants should be allocated and prioritised.

The Government announced on October 20 that Equitable Life policyholders would receive total payments of around £1.5bn, £1bn of which will be paid out in the first three years of the spending review.

Government has now asked the commission, which will be chaired by Brian Pomeroy, to provide advice to policymakers on how the remaining funds should be divided between 500,000 individual policyholders and 600,000 group policyholders.

Pomeroy says: “The Commission realises policyholders have strong view on this subject and we urge all interested parties to read the discussion paper. This is an important opportunity to make their views known on how funding to policyholders, other than with-profit annuitants, should be allocated and prioritised in the Equitable Life Payments Scheme.”

The commission will report to Government by the end of January 2011.


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There are 6 comments at the moment, we would love to hear your opinion too.

  1. For a company that built its reputation on the fact it didnt pay commission, it could almost make you smile that they end up with one of the biggest “Commissions” in financial services.

  2. You are so right John.
    Still Interesting that the removal of the Government AVC scheme at the end of 2000 from Equitable hasn’t been investigated! Yet IFA’s were warned not to advise the public to transfer away. Or am I just a cynic. .
    Role on retirement. after 37 years of TCF.
    Why it is that politician are so corrupt!

  3. Let it never be forgotten that all this blew up on the PIA’s and then the FSA’s watch. A significant number of people were employed on fat salaries and bonuses with lavish expense accounts, etc but they failed totally to discharge their statutory responsibilities to stop this happening.

    What sanctions have ever been imposed on any of them? None ~ they all just walk away scot-free whilst the taxpayer picks up the tab. It’s a national disgrace.

  4. Was going to make the Commission point, but John Joseph was ahead of me. Wonder if any in the govt or regulators see the irony here?
    BTW wasn’t there another insurer that never paid commissions that went bust years before Equitable? UK Provident or something like that – before my time..

  5. Tongue in cheek – but – wasnt it mainly Mark Hobans chartered accountant colleagues who “sold” Equitable life primarily because it did not pay commission ? – Will the same fate now await many of the other product providers in 2013 who have thrived by recognising that marketing fees (sorry commission) paid to advisers was a cost effective and efficient way of growing their business ?

  6. I clearly remember in the 1990’s Equitable Life picking up considerable repeat business (especially from high salaried professional career policyholders) on the back of the pure fact that they did not pay commissions. They felt that they would always get a better return. These are now amongst the very people that have been adversely affected – and their ‘pots’ are higher than average.

    It will be interesting to see how the compensation ‘pot’ is eventually divided up.

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