For heaven's sake, why doesn't the powers that be stop pussyfooting
around and declare Equitable Life insolvent?
According to a report in Money Marketing, the appointed actuary reported
that as at December 31, 2000 “total policy values were in excess of the
available with-profits assets” or, in plain English, liabilities exceeded
assets. The definition of insolvency.
When someone of Stuart Bayliss's expertise is warning that “the effluent
is about to hit the ventilator”, why isn't some-one listening? Why doesn't
the regulator let the Treasury do its duty and put this basket case out of
I realise the ramifications but the alternative seems only to rob
policyholders. This is as big a mess as Barlow Clowes and on that occasion
the Government bit the bullet.
A declaration of insolvency would provide policyholders with 90 per cent
of their assets by current Equitable standards – a pretty good deal.
Low charges and no middle-men do not guarantee a secure future.
Government, please note.