Updated 1st July, 2019

EMAG exists to campaign for full government compensation. Will members of EMAG please note that because of pressure of work we regret it is not possible to answer individual written enquiries.

A short video which explains what EMAG is fighting for.

Recent Supportive Quote

Audit reform lessons will be delayed and ignored

“Lombard raises the urgent need for audit reform in the context of the £100m fine on KPMG for work in 2009 on Co-op Bank and suggests an Investor Protection Act (“KPMG pays £10m fines but the public is owed more by auditors”, May 9). 

“Speaking from my experience as past chairman of the Equitable Members Action Group, this would be worthless. Because of the decision in Caparo Industries v Dickman, an auditor has no duty of care to shareholders and users of accounts. So we did not sue Ernst & Young (the auditors); not that we had the money! This case needs reversal to make auditors liable for their actions or inaction.

“On directors' liability, the directors of Equitable under the leadership of Vanni Treves wasted policyholders' funds on suing both the former directors and E&Y. As expected both the cases collapsed at a cost of £30m to Equitable. 

“Then E&Y appeared before the predecessor of the Financial Reporting Council — the Joint Disciplinary Scheme. It received a derisory fine, a slap on the wrist. Its failure to whistleblow on the existence of the Equitable deficiency was not on the charge sheet: E&Y had been able to rely on actuaries' figures.

“Gordon Brown originated the phrase “lessons to be learned”when as UK chancellor he launched the Penrose inquiry into Equitable. The Treasury delayed the results of Penrose, then the Ombudsman's report and finally the recommended compensation scheme — it all took 10 years. Now whenever the phrase is used my cynical brain translates it into “lessons will be delayed and ignored”. 

From John Newman, ex-chairman of EMAG
Letter published in Financial Times, 13th May, 2019

News of the APPG

On Tuesday 11th June the Equitable APPG held a meeting to hear an update from EMAG. 15 MPs and several MP assistants attended. MP members will once again be applying to hold a further debate about compensation, following up on the one on 31st January ( see Hansard.)

Membership of the APPG, thanks to the EMAG regional team's endeavours, is now up to a very impressive 261 MPs!

See www.emag.org.uk/justice_group.php

Pressure from Labour

EMAG has been pressing sympathetic Labour MPs to sign a Labour backbenchers' letter. It was submitted by the MP for Leeds NW (Alex Sobel) to John McDonnell, Shadow Chancellor, to ask him to commit to paying out to Equitable Life's policyholders the compensation still due. Over 50 Labour MPs added their signature to the letter, which was sent on 17th May.

See it at: www.emag.org.uk/documents/Labour2McDonnell17May19.pdf

Calling all Equitable Life WPAs

EMAG has been trying to persuade the Treasury to send out to each of the 36,000 post-1992 WP annuitants (now being administered by The Pru) a schedule of their future ELPS annual compensation payments beyond 2020. But we have met with a blank refusal on cost grounds – though we know that they already hold this information for every WPA and are willing to respond on a case-by-case basis. So, if you're an Equitable Life annuitant in payment, you can write a simple letter asking for a schedule of your compensation payments to 2029 to:

Equitable Life Payment Scheme,
PO Box 414,
11b Lingfield Point,
Darlington DL1 9WN

EMAG attended the Equitable Life's AGM

Chairman Ian Brimcome and CEO Simon Small

On Friday 24th May, along with 100+ members, EMAG's Paul Braithwaite attended the Society's AGM in London. The attendees heard in detail the timeline of the prospective sale to Utmost Life. The preliminary court hearing will be on 22nd July 2019. The board expects, if successful, to complete the sale by the end of this calendar year. Which would mean uplifts of circa 60% to 70% being added to the remaining members' guaranteed funds, in return for relinquishing their 3.5% GIR and ownership, in January 2020.

Read more at:www.equitable.co.uk/proposal/index.html

EMAG's AGM

EMAG's 19th AGM for paid-up current members will once again be held at the Royal Automobile Club in Pall Mall, London on the afternoon of Wednesday 20th November 2019.

EMAG has a campaigning website

EMAG's new “outward facing” campaign website is ready at www.emag.today. It includes some simplified information on the campaign and several video clips featuring EMAG members.

EMAG's successful Westminster Rally, 22nd October, 2014

EMAG's campaign objectives

EMAG will campaign until fair compensation is awarded to the million victims of the Equitable Life scandal.

For the majority 945,000 victims

95% of Equitable's with profits policyholders have received just 22% of the Treasury's calculation of their ‘relative losses’ without any interest paid from 2009 onwards.

With the economy at last recovering, we are campaigning for a commitment that victims will receive the missing 78% of their compensation entitlement.

For the pre–1992 WP Annuitants

We are campaigning to get MPs to insist that the 10,000 pre–September 1992 WP Annuitants are compensated on exactly the same terms as those who took their WP Annuity after that date. We view the current flat rate £5,000 as a welcome down–payment.

For the post–1992 Annuitants

For the 37,000 WP Annuitants who are receiving an alleged ‘100% of their relative losses’ we are seeking dialogue with The Prudential to see why annuity payments continue to fall every year.