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

Documents: 26/11/2009 - Colin Slater's Note on the position of those members who started their annuities pre-1991

The position pre-1991

The PO designated 1 July 1991 as her start date for maladministration. This was the day after the misleading 1990 Return was filed for publication.

Primarily, relief would be based upon premiums paid after that date and this would provide compensation for all the hundreds of thousands who invested between July 1991 and Dec 2000, when the company closed.

The Government, in its instructions to Sir John Chadwick, rejected (or severely limited) all the findings of injustice arising from that maladministration except from 1 May 1999.

This had the broad effect of moving the start date forward  8 years and excluding from primary relief about 90% of investors and 90% of premiums.

The effect of the Court case has neen to force the Government to think again and to re-instate the PO's start date of 1 July 1991.This is why it is a major victory for EMAG.

As far as those who invested before the beginning of the maladministration period are concerned, especially those who took out with-profit annuities before that date, we are sure that the PO intended some form of compensation, but she left this to be formulated by the Tribunal, which she recommended and for which EMAG continues to campaign.

As EMAG has stated in our report: "Principles of Compensation"

"In EMAG’s view, all with profit policies in existence during the period of maladministration should be eligible for evaluation of loss.

"The start date chosen for loss evaluation is consequently only of relevance to the minority who paid premiums before that date. We suggest that they be treated as having paid a notional premium equivalent to the accumulated value of the relevant policy upon that start date."

Colin Slater
November, 2009