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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Correspondence: 20/08/2001 - to Guernsey Financial Services Commisssion

Correspondence Archive

EMAG letter to Guernsey Financial Services Commisssion

Attention Mr Peter Neville, Guernsey Financial Services Commisssion

Dear Mr Neville,

Thank you for your email of 16th August with the attached press release containing the appointment of Norton Rose.

EMAG International members are glad that the GFSC has finally acted, but are concerned that GFSC's brief to Norton Rose will be to genuinely investigate FULLY the legal position of the Guernsey POLICYHOLDERS and NOT simply to protect the interests of Guernsey Financial Services Commission and the Balliwick.

If it is thought that the GFSC will not allow ALL possible evidence to be presented to Norton Rose for consideration, especially in time for the Court to decide that Guernsey policyholders should be treated as a separate class for the 425 Scheme of Arrangement, it could negatively affect the Balliwicks image as a well regulated and policed financial centre..

Our members in countries around the world, feel they were tricked into buying, what have become defective policies. Nicholas Warren said in his opinion "effectively, the non-GAR policyholders are therefore left with policies which could never have been marketed to them had the true position been known"

Policyholders were unaware until very recently that the monies they believed they were investing into a Guernsey BASED fund, were actually being received by a " a post office box" under the auspices of Bacon and Woodrow and remitted to ELAS in Milton Keynes.

Page 3 of the Equitable Life Booklet IIP7mkt 7.91 states "What is an International Investment Plan?
BASED in Guernsey one of the Channel Islands, the fund enjoys the benefits of an environment of political stability and high regulatory standards as well as favourable tax treatment". The back page states that Equitable International are regulated by the Personal Investment Authority.

Yet in an ELAS letter dated 4th May 2001 it is stated: "As our International policies are sold through our branch in Guernsey they are NOT regulated business and the PIA rules relating to the sales process and the giving of advice do not apply".

At the AGM in May 2001 both the Chairman and Managing Director of ELAS stated, and have subsequently confirmed in writing, that the International funds were "identified assets" yet the very same "identified assets" are allowed to be used to meet the GAR liability in a country and by a jurisdiction, The House of Lords, which has no relevance whatsoever to many International policyholders who neither reside in that jurisdication and who may not even be British.

Page 5 of the same 1991 Policy Booklet states "The booklet and the Policy and any endorsements issued for attachment to the Policy shall be interpretated in accordance with the laws of Guersey" but Guernsey policyholders find that they have been subject to the Laws of Great Britain and it's House of Lords decision. Where does the law of Guernsey stand in this matter?

We also find that the Republic of Ireland, German and Dubai with-profits policies have received different treatment with respect to the GAR liability than those of the Guernsey with-profits policies, yet we are all invested in the "same pot" according to ELAS.

Then there is the issue of "pass-porting" Guernsey products and their sale in certain other countries. We understand that any ELAS Guernsey based products sold within the EU must first have DTI approval, then be approved by the equivalent body in the country where they are promoted/sold. We understand Equitable never formally adhered to this regulation.

Our members are presently submitting other evidence to the EMAG International co-ordinator which we believe will show "Contractual Rights". Please confirm that I may forward such evidence to GFSC for submission and FULL consideration by Norton Rose. Also as GFSC is representing Guernsey policyholders we would be glad to know that EMAG could be considered privy to the legal brief to ensure that our claims and concerns are fully incorporated.

Please be assured that EMAG intends to act responsibily on behalf of it's members and seeks to work closely and amicably with GFSC. In this regard, and as requested, I confirm that I can be contacted at any time for further information or assistance.

Yours sincerely,

Margaret R Felgate

EMAG Committee Member for ELAS International Policyholders

You may wish to know that our membership includes policyholders in the following countries:
Guernsey, Jersey, Ireland, Germany, Spain, France, Belguim, Switzerland, Austria, Poland, Cyprus, Turkey, Greece, Finland, Sweden, Dubai, Bahrain, Kuwait, Saudi Arabia, India, Japan, Thailand, Malaysia, Singapore, Hong Kong, Australia, New Zealand, South Africa, Tanzania, West Indies, Canada, USA, Chile.