EQUITABLE LIFE MEMBERS
House of Commons
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.
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
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.