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Skills of former Equitable board inadequate – Penrose

The skills of Equitable Life&#39s former board were inadequate for the job and it never got to grips with the society&#39s true financial position, according to Lord Penrose in his report on the insurer.
Penrose says critical responsibilities for valuing liabilities, assessing the liability implications of new products and identifying and monitoring risk were carried out by a “discrete part” of the society that was not scrutinised effectively or challenged.
He says Equitable&#39s former board never “got fully to grips” with the society&#39s financial situation, with information too fragmented and their collective skills “inadequate for the task”.
Effective arrangements for making sure there was detailed examination of and onward reporting to the board on actuarial reports was non-existent.
Penrose says: “Equitable&#39s non-executive directors were so wholly dependent on actuarial input from the executive and in particular the chief executive/actuary that they were largely incapable of exercising any influence on the actuarial management of the society.”


Class act

Tsk, tsk, bottom of the class. The Diary can only speculate as to whether the quiz team of a downmarket rival knew what the acronym Isa stands for at the Penrose financial services publishing quiz in the City of London last week. The Diary&#39s team would have gone to commiserate the rag&#39s bottom placing if […]

IFAs will not compromise independence over GPPs

IFAs signing up staff to group personal pensions will be all-owed to describe themselves as independent even though a group personal pension provider has already been selected. The menu proposals say a firm enrolling employees into a GPP will not compromise its independent status if the scope of advice is restricted to advising on joining […]

Who is policing policy changes?

It was interesting to read in Product Matters about Norwich Union&#39s commitment to with-profits (Money Marketing, February 19). The strange thing is that it does not offer a with-profits contract any more. You can call a bed a chair because you can sit on it but the other way round it becomes a very restless […]

Dawney Day Quantum – Protected China Fund

Type: Capital-protected fund Aim: Growth linked to the performance of the FTSE/Xinhua China 25 Index Minimum investment: Lump sum £5,000-no maximum, Isa £7,0007 Investment split 100% linked to the performance of the FTSE/Xinhua China 25 Index Term: Six years Return: Up to 70% growth Guarantee: 90% of original capital returned regardless of performance of index, […]

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]


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