11th December 2000 - Equitable Members Action Group press Equitable to resolve Legal Issues and act decisively to restore confidence - Press release

Since its inception in August 2000 EMAG has been pursuing the possibilities of constraining or modifying effects of the House of Lords ruling, which has brought chaos and dismay to the over 1,000,000 people who have an interest in the Equitable Life (or associated group schemes).

EMAG has been fortunate in having amongst its members Mr Jeremy Lever QC, of Monckton Chambers and Senior Dean of All Souls College, Oxford. Working closely with Adrian Howard-Jones, EMAG Secretary, Jeremy Lever, formed a view of the issues involved. His arguments, perforce formed without having studied the complete papers of the case, were communicated to the Society in early October.

A central argument is that the non-GAR policy-holders, who were represented at the House of Lords throughout by the Society, have not had their case properly put. Jeremy Lever argues that there existed differences of interest between the Board and the non-GAR policy-holders which meant that the Society could not adequately represent them. Therefore the majority of policy-holders did not enjoy the right to independent representation and in consequence, have been grossly disadvantaged.

The first step recommended by Jeremy Lever is the briefing of independent Leading Counsel not so far involved in this case, to advise whether the gates of the courts of justice are still open to the non-GAR policyholders and whether their case has merit.

Even a favourable opinion by Leading Counsel would radically change the outlook for the Society and could begin to restore confidence.

Success in a complete legal action along the lines suggested would not completely remove the value of the Annuity Guarantee to GAR policy-holders, but would open the way to proper valuation of all the policies.

For more than a month now EMAG has repeatedly pressed on the Society detailed arguments supporting the view that the legal situation had not been definitively resolved. Equitable has not yet, it appears, embraced even this first step.

The point has been reached where a serious loss of members' assets could occur through loss of confidence and disintegration of the sales force, without realising any value.

EMAG calls on the Equitable Board immmediately to take the action suggested by Jeremy Lever, namely, to instruct independent Leading Counsel along the lines proposed.

Copy of letter from Jeremy Lever QC to Mr Alan Nash