Equitable Life

[Pippppin]

Equitable Li_e

It is a myth that all Equitable policyholders are members of the landed gentry.

Many ordinary people such as myself (and my mum) fell for the personal pensions hype. As a self-employed person I eventually succumbed to the "drip-drip propaganda" which began in the eighties warning people of the dangers of insufficient pension provision. Especially the self-employed.

I paid a whole year's income into my pension, unaware that Equitable Li_e were only three months away from the High Court ruling which led to this whole sorry mess. Equitable Li_e where only too willing to take my cheque from me.

Compensation or not, I would never trust another insurance company, and my only realistic future pension option is to start a SIPP. And hope they do not scrap the state pension, which is looking increasingly uncertain.

 

[RogerM]

bracke - I don't expect it to be anything as obvious as paying directly from the Treasury. But whether the Insurance Industry is in a fit state to shell out £4 billion is debatable, so whichever way you look at it, it is the general public that will end up paying the compensation, regardless as to whether it comes direct from the public purse or whether Ins Cos have to increase their charges to cover increased contributions to the protection scheme.

pipppin - The professional community were the target market for EL, but they were happy to deal with whoever they could, although they tended to show indifference to lower earners. I think you'd be surprised at the %age of solicitors and accountants that hold EL policies.

 

[Pippppin]

Equitable Li_e

RogerM

you are right. Middle class (and upwards) were the target market for Equitable Li_e. Which, of course, increases the chance that financial compensation will eventually be forthcoming. The rich do not not tolerate losing money as easily as the poor.

 

[Rainmaker]

There is a slim chance that Equitable's Auditors (Ernst & Young) will get it in the neck for this debacle. I'm not an Equitable member, but the thought of such a crisis developing without the auditors knowing about it is quite scary! I DO have a Norwich Union policy (audited by Ernst & Young), which is some cause for concern!

Any views?

 

[RogerM]

Thought I'd resurrect this thread in the light of today's news. I wish I had the same talent in picking lottery numbers!

BBC NEWS | Business | Compensation call over Equitable

Government told to compensate Equitable Life policyholders | New Model Adviser ® | Citywire

I bet this receives no opposition for all the reasons stated above. Remember - you heard it here first 4 years ago!

There was of course no compensation for the members of the Christmas club that went bust a couple of years back - but then MPs would not have been exposed to it. I wonder whether the government would have had to compensate policyholders with companies such as the Pearl, Brittanic or Co-operative which tended to target manual workers had a similar scandal affected them. I guess we'll never know.

 

[zambuck]

Roger's first post sums up the eventuality of EL precisely....

There is really no scope for any discussion on this issue as to what will happen.....

QED...

 

[Mayfly]

So, when are we (they) gonna pay up?

Cheers,

Mayfly

PS: I'd like to think that boards (such as, EL's) may be more careful to distinguish between guaranteed nominal and real returns in future, when they're writing similar contracts. The law lords (bless them), couldn't see the difference after all!

 

[Mayfly]

Equitable Life: A decade of regulatory failure

I received my dear Former Members' letter from Vanni Treves and Charles Thompson today.

In conclusion, they state that if policy holders write forcefully to their MPs the prospects for securing Government compensation will be improved. They also believe that this may speed up the process.

"You also need to be aware that the Ombudsman has not concluded that all policyholders have suffered a financial loss. (They're absolutely right about that!) However, she does does believe that in many cases "a loss has been sustained, relative to what would have transpired had those individuals saved or invested with a comparable with-profits fund." It is intended that the detailed rules will be determined by an independent compensation scheme."

Well, I guess patience is the watchword with this one!

HTH

Cheers

Mayfly

 

[Mayfly]

Time passing slowly here:

Petition to: to offer compensation to Equitable Assurance investors. | Number10.gov.uk

Cheers

M

 

[RogerM]

Just over 6 years since I started this thread, it's coming! http://www.bbc.co.uk/news/business-10724884

 

[Mr. Charts]

Hiya Roger !
So I might get a bit of money back !
Take care,
Richard