View the article online at http://citywire.co.uk/money/article/a399526
Equitable Life victims to receive compensation under new coalition
Savers who lost money in the Equitable Life saga will benefit from a new compensation scheme announced yesterday by the new coalition government.
Over one million people who lost money as a result of the Equitable Life scandal in 2000 will benefit from a new compensation scheme, the new coalition government announced yesterday.
The parties said they would compensate Equitable Life policy holders for their ‘relative loss as a consequence of regulatory failure’, as advised by the Parliamentary and Health Ombudsman.
This offers the savers who lost money when the pension company near collapsed in 2000 a better deal than the scheme previously being devised under the Labour government.
Chris Wiscarson, chief executive of Equitable Life, said: ‘We are delighted with this development.’
‘We look forward to working with the new government to deliver a payment scheme that is swift, simple, transparent, fair and seen to be fair’, he added.
Meanwhile, Paul Weir, spokesperson for Equitable Members’ Action Group, said: 'We welcome the new Government’s commitment to implement the Parliamentary Ombudsman’s report in full. After 10 years of denial and obstruction by the previous administration it has been a long time coming'.
'Sadly, many thousands of Equitable pensioners have died without justice, sacrificed on the altar of Gordon Brown’s defence of ’lite touch’ regulation,' he added.
Last year the Labour government apologised to victims of the Equitable Life saga, after an ombudsman report claimed ‘a decade of regulatory failure’ was responsible for the pension company’s near collapse.
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