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: 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:-

  • he is reporting to the Treasury ministers, not to the public
  • he is not seeking to allocate blame
  • he does now know how long his Inquiry will take to complete. Although he has no wish to prolong it, he intends to undertake a thorough analysis. He expressed the hope that he will report "before the end of next year", but he added that Maxwellisation will protract the process. Finally, the Treasury has the prerogative to edit and remove any references to sensitive papers on grounds of confidentiality having been granted in return for access. And no doubt it can delay, if not defer, publication. I would not be surprised if the report is not published until 2004, more than three years after the Society closed for business
  • the Society has provided the majority of documentary evidence

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,


ALEX HENNEY

c.c. Messrs. Treves and Thomson; EMAG Committee and website; other action groups.