Alan Reid MP wants the Government to compensate policy holders of the failed Equitable Life in full as recommended by the Parliamentary Ombudsman. The Government had accepted the Parliamentary Ombudsman’s findings in full, including the recommendation that policy holders should be put back in the position they would have been in had maladministration not occurred in the Government Actuaries Department, but...
Most victims have only received partial compensation compared to their losses. During a debate on the subject last Thursday Alan Reid and a number of other MPs called for the Government to make a commitment to provide full compensation during the lifetime of the next Parliament as the economy and public finances continue to recover.
Mr Reid told the House: "The public need confidence that the pension industry will be regulated properly, and in this case it obviously was not—the Government Actuaries Department failed. Now that the public finances are in a better state, I think the Government should pay up in full, as recommended by the Ombudsman, otherwise people will not have confidence in the future."
NOTE: Equitable Life is a mutual life assurance company. It got into financial difficulties in the 1990’s and closed to new business in 2001. As a result, many policy holders lost most of their savings. The Government decided in 2010 not to pay out full compensation because of the difficult state of the public finances at that time. The public finances have improved rapidly since then.