Minutes of EMAG committee
meeting, 17th July 2001
Present: Paul
Braithwaite, Betty McCann, Alex Henney(until 8.30), Colin Slater (Committee)
David Browning (Member)
Apologies: Adrian Howard-Jones, Tom Lake, Rodney Allen
- Minutes
The Minutes of the meeting held on June 11th. were approved.
- Chairman's Review
PB reported on the detail of the ELAS statement on July 16th (available on
ELAS website with Q & A). A large number of questions of the Society remain
unanswered, perhaps because of the planning involved to announce the cuts.
PB to follow up in writing.
The Treasury Select Committee has a new team with John McFall as chairman.
PB and DB to liaise and press for ELAS to be revisited.
It was noted that the FSA's report on its own role in the Equitable affair
has just been delayed until November.
Noted that the liquidators of Independent Insurance have appointed Denton
Wilde Sapte to investigate culpability of Herbert Smith, whilst the latter
are retained by ELAS to evaluate DWS culpability. PB to write ELAS for reassurance,
with help from Jeremy Lever.
AH reported that Warren II is expected to be delivered to the Society before
the end of July. AH-J has not yet received a copy of the brief (subsequently
received July 18th. Noted that it was prepared by DWS).
Relations with other Action Groups. A joint meeting to consider reactions
to July 16th had been fixed for July 19th. PB and CS to attend. PB sought
and received endorsement to pursue merging interests with ELMHG, particularly
with regards website. Tom Lake has said he would like to pass on responsibility
for the EMAG website's maintenence. Observed from EPHAG's minutes of meeting
with FSA that there seems to be little to be gained by EMAG pressing for its
own FSA meeting.
- Compromise Meetings
CS reported that he felt that ELAS management were "stonewalling" at the June
15th meeting and that there was now little time left to apply influence on
the compromise's content. Anicipated publication date of draft proposal is
mid-August.
- Annoucement of July
16th.
This was analysed by CS. There was no sign in 2000 accounts that equity performance
was other than neutral. It is inconceivable that, having moved swiftly to
gilts and bonds around Jan 2001, ahead of the fall, the Society's equities
(about 50% of fund by the AGM) could have accounted for anything approaching
the 20% "hit". Best estimate of equity fall impact could not exceed 6%. Speculated
that the Society was either preparing a war chest or anticipating a large
provision for misselling. Acknowledged a need to rebuild the much depleted
reserves. Suggested that EMAG ask VT for a proper explanation, since the one
given was nonsense. Observed that ELAS's own ad that day was totally misleading
in ascribing the 16% as to terminal bonuses. Suggested that we write the FSA
asking for a rationale to justify the 7.5% MVA.
- Treasurer's Report
Current cash circa £7,500. BMcC will sort out new bank mandate and moving
PO Box. Agreed not to implement an annual renewal subscription at this time.
Membership will continue to be by subscription only (suggested contribution
£20). Tom Lake was authorised to test market a sample quantity membership
recruitment mailer on his return in early August.
- Rodney Allen's Paper
Whilst appreciated it was concluded that in principle EMAG were not willing
to fund exploratory legal action on behalf of any one sectional interest.
EPHAG are dedicated to supporting the nonGARs. It was observed that any litigation
would need access to a six-figure pot. Starting a test case for nonGARs re
misselling is premature when Warren II is imminent.
(Note: At this point AH left and the meeting was no longer quorate.)
- AOB
It was suggested that AH-J be invited to draft new EMAG objectives.
It was agreed that EMAG should continue NOT to give advice. We continue to
see our role as maximising information for members to take their own decisions.
Meeting closed at 9.00pm.
Next meeting tba in first week of September.
David Browning and Paul Braithwaite
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