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Minister rejects compensation calls for Eq Life victims

Treasury chief secretary Liam Byrne has rejected Parliamentary Ombudsman Ann Abraham’s calls for a compensation scheme for the victims of the Equitable Life as legal action from policyholders began yesterday.

Speaking in the House of Commons on Tuesday, Byrne said: “It would simply be irrational for the Government to propose a compensation scheme, across the board, for charges of maladministration or injustice that we didn’t accept.”

He said the taxpayer should not be the “compensator of the last resort” and that an ex-gratia scheme would be more appropriate.

Yesterday the Equitable Life Members Action Group took the Government to the High Court to challenge the Government’s rejection of the Ombudsman’s findings.


Nothing out of the ordinary

In forming a judgement on the FSA’s proposals for the new professional standards of competence and ethics for IFAs, as set out in the document published in June on delivering the RDR, it is useful to compare those standards with those which the law would imply and impose in any event.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. sicktothebackteeth 22nd July 2009 at 2:23 pm

    do as I say ….
    It was irrational for advisers to pay for a charge of maladministration & injustice re the endownent problem caused by the Lautro 12 19 32 who knows? actually the FSA do but they are not lagging on their pals.

  2. There’s a saving…
    If the Ombudsman’s word is of so little worth I can only assume it/they should be scrapped as a waste of time and money……. There may be a few more such candidates…..

  3. equitable life action group
    financial advisers were made to pay up for previous scandals, as they were the easiest soft target. if advisers were able to advise on equitable products (which they were’nt), again we would see the buck fall on them. as there is no scape goat here, it now has fallen on the government.

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