EQUITABLE LIFE MEMBERS

LETTER WRITING

 

DRAFT LETTER

xxxxx MP

The House of Commons

LONDON W1A OAA

 

Dear Mr xxxx

 

You will undoubtedly be aware of the difficulties being faced by members of the Equitable Life Assurance Society With Profits Fund.  I am a member of one of the action groups which is trying to protect the interests of members in what has now become a near farce if not a tragedy in the making. 

 

It is clear from the evidence already produced that there is a case to be answered by the regulatory authorities as well as many of the professional advisors and the old board of the society.  It may take many years and considerable litigation to sort out the mess, but in the meantime it seems to me that there is a real interest on the part of the pensions industry generally and the government in securing stability for the fund.  Considerable effort and public money is being expended in order to convince the population at large that they should be saving for their future, but it will not be hard to make an already cynical public even more wary of handing over their money to 'suits' in the city if they watch the demise of a society as important as the Equitable Life.  With many members already leaving the sinking ship at a cost apparently of some 25m per week to the society it will not be long before we have a major failure on our hands with all the implications that will bring including, I imagine, substantial costs to public funds in the last resort.

 

It cannot be in the interests of any party to this mess to see the situation deteriorate further, and I would ask you to consider an approach to the government to accept its responsibility in this affair and to stabilise the fund with an immediate commitment to inject cash into the society (I understand 2.6bn is the figure required).  The fund can then proceed with the necessary measures to ensure that members are secure in their future retirement and to recoup losses from advisors who may be liable.

 

Yours sincerely,