EMAG

The independent action group for current and ex Equitable Life policyholders, funded by contributions.

Equitable Members Action Group

Equitable Members Action Group Limited, a company limited by guarantee, number 5471535 registered in the UK

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Best Media Stories: 08/10/2005 - Letter from EMAG’s Paul Braithwaite in FT.

Equitable policyholders deserve a change from litigious leadership

By Paul Braithwaite

Published: October 8 2005

From Mr Paul Braithwaite.

Sir, EMAG disagrees with the conclusion of your editorial ("Time for Equitable Life to call a halt", October 1) that Vanni Treves and Charles Thomson should stay. For more than four years, policyholders have suffered from their ill-judged approach that applied legal solutions to everything, enriching lawyers by the best part of œ200m. The Section 425 compromise was railroaded through and did not deliver the promised benefits. After a U-turn, annuitants have suffered income cuts of more than one-third. The board has refused to back Emag in holding the government to account via European action, yet this now looks encouraging. The existence of embedded contractual promises dictates that the fund can no longer invest in equities, thus missing out on stock market rises. That should have been addressed four years ago.

Most of the boasted increased solvency came from adding back provisions set aside for legitimate mis-selling claims that have to be "seen off". Since 2001, policyholders have trusted in the "billions" Mr Treves said would flow from his legal actions, the end game seems to be to parcel-off Equitable at any price. There are seven other members of the board. One wonders: what are they for?

Paul Braithwaite, General secretary of EMAG Ltd, London NW5 2LL