Correspondence: 05/11/2002 - Open letter to the non-executive board members of Equitable regarding FSA & Parliamentary Ombudsman 5th November, 2002 - Open letter to the non-executive board members of Equitable Dear Non-Executive Board Member, You may or may not be aware that last Tuesday the seven action groups organised an event to mark the first anniversary of the Parliamentary Ombudsman agreeing to examine a pilot case of maladministration by the FSA. I attach press reports from the Daily Mail and the Guardian. Regrettably the board did not support the action groups, yet the Consumers' Association did. The Society merely provided the Daily Telegraph with the insipid comment that: "Equitable Life declined to comment on the action groups' demands. A spokesperson said: 'Our priority is managing the fund in the best interests of all policyholders'." On Wednesday four members of EMAG's committee met with Lord Penrose. He explained to us that:-
We do not accept Treves' reason given for waiting for Penrose - that he will have access to many confidential papers - because those cannot be included in Penrose's published report. We hope that you will exercise the role of "independent judgement" that non-executive directors are supposed to bring to a board. In particular we note that Mr. Bullen in his election statement wrote that "The need to rigorously examine all possible opportunities for recovering the Society's losses are high on the agenda". The Government has a much deeper pocket than the former directors. People put money into the Equitable in part based on trust in the government's role as prudential regulator. We ask that the board prepare and publish a reasoned moral case for compensation and henceforth support the endeavour of the "E 7" group of groups in the quest for Government compensation. Yours sincerely,
c.c. Messrs. Treves and Thomson; EMAG Committee and website; other action groups. |