View more on these topics

Watchdog to accuse Government on Equitable failings

The Parliamentary Ombudsman looks set to find the Government guilty of failing to properly regulate Equitable Life, according to a leaked report.

The draft report, leaked at the weekend, raises the potential for compensation of up to £4bn for the millions of policyholders who lost out in the Equitable Life crisis.

However, many experts fear that the Government will reject this report, as it did when Parliamentary Ombudsman Ann Abraham found it guilty of maladministration over the collapse of occupational pension collapses.

Abraham is thought to accuse the Government of “serious, serial maladministration” and also blame the FSA of failing to properly monitor Equitable Life.

The report has been delayed twice and will have taken three years to compile by the time it is published before the summer recess.

It looks into the roles played by the Department of Trade and Industry, the Treasury, the Government Actuary’s Department and the FSA in the debacle.

The last delay, in October 2006, came after Abraham’s team uncovered the fact that potentially vital information was missing from the evidence that had been given to it by the Government.

MEPs are also investigating the problems at Equitable, with a European Parliament committee due to publish its report by the summer.

Hargreaves Lansdown head of pensions research Tom McPhail says: “It is possible that the Government could again reject Ann Abraham’s findings and there will probably be less sympathy for these policyholders compared with the victims of occupational scheme collapses.”

The Parliamentary Ombudsman would not comment on the leak.

See Equitable fallout


It’s good to talk

The protection market must think beyond price so advisers can communicate with clients.

Jupiter joins fast-growing Euro income

Jupiter’s European equity income fund launch could herald the start of a number of rival firms following suit.The fund, to be run by Malcolm Millar, is only the fourth retail fund investing in European stocks for income following similar launches by Newton, Resolution Argonaut and boutique 2CG over the last 18 months.Hargreaves Lansdown senior analyst […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm