Press Releases: 07/02/2004 - New EMAG report: Blistering indictment of the FSA 7 February '04 - Press Release - New EMAG report: Blistering indictment of the FSATHE FAILURES OVER THE PERIOD 1999-2003 OF FSA IN PROTECTING THE POLICYHOLDERS OF THE EQUITABLE LIFE. Because EMAG believes Equitable Life is at the heart of that crisis in confidence, we have just lodged a substantial submission to the Treasury select committee's investigation into "Restoring confidence in long-term savings". The Penrose Inquiry has looked at 50 years up to August 2001 but it was not remitted to look thereafter at the highly suspect CONpromise (as it has became known amongst policyholders) which came six months later in February 2002 with yet more dire consequences. Paul Braithwaite, general secretary of EMAG, said: "This new report is a blistering indictment of the FSA's role in actually exacerbating the Equitable Life scandal. It proves that where the FSA's own objectives are in systemic conflict, policyholder interests have consistently been sacrificed. Further, that the FOS is, unhealthily for aggrieved Equitable policyholders, under the thumb of its master the FSA. Redress at the Equitable and a new structure of 'checks and balances' on the FSA are absolute pre-requistes to any restoration of confidence." Extracts from the new report: "The FSA:-
This unsatisfactory performance provides no comfort that people's long-term savings would be protected by the FSA. It is profoundly unsatisfactory that the FSA is not adequately accountable to either Parliament or to policyholders, and so can behave inappropriately with limited risk of being taken to task. Recommendations EMAG recommends that:-
An abridged 41 page version of the report has just been cleared for publication, is available to journalists on demand and will be made available, FREE to all on EMAG's website at: www.emag.org.uk See the attached five page summary file. For further comment, contact Paul Braithwaite Notes: The author of this report, EMAG's chairman Alex Henney, is in Australia. EMAG is awaiting a decision in the High Court on its claim for Judicial Review which seeks to quash the report of the Parliamentary Ombudsman into Equitable Life. |