Newsletter -  19th December 2008

On 16^th July 2008, the final report by the Parliamentary Ombudsman was presented to Parliament and on 15^th December 2008, the final report by the Public Administration Select Committee was published. Generally, these reports have been well received with little criticism by the media, and the issue of compensation has now been placed firmly in the Government’s hands.

The Government will take its time to reflect on the issues raised and decide what actions to take. For the moment, we will have to wait on their response but I cannot see the Government now saying “There is to be no compensation.”  Of course I do not know but my expectation is that there will be some form of Tribunal to investigate losses and decide on individual payments to each policyholder.

One of our major tasks is to ensure that with-profits annuitants’ interests are protected both in terms of how such a Tribunal is constituted and how it decides to calculate and award losses. I am hoping that the Tribunal will set up a scheme that allocates any compensation fairly without the need for legal, actuarial or indeed other assistance. That is what I hope can be achieved by lobbying.

If however that turns out not to be the case then we will need to set up a mechanism by which legal, actuarial or indeed general advice will be available to assist members make their claim. Clearly, there would be costs associated with that and as a result, it could not continue to be provided on a pro bono basis.

I am often asked if there is a membership fee to join ELTA. The answer is no, well at least NOT YET. At present, Clarke Willmott assists me with advice and do so without charge. From time to time, they have also assisted with expenses such as travel to the UK for attendance before the Parliamentary Administration Select Committee on 11^th November 2008.

So for the moment ELTA does not need any funding but when we do I will need to obtain membership funds and will contact members. At that time ELTA will need a formal constitution, to appoint directors and an accountant, set up a bank account, etc.  The small advisory board will help formulate our approach, as a small number of heads will be better than one (mine), when we start discussing issues with any form of Tribunal deciding on compensation. This will also ensure that so far as is possible we represent the complete spectrum of with-profits annuitants.

When we know more, we will write to all the existing members of ELTA.

But having said all of the above I am not sure we can do anything between now and the Government’s formal response.

In the meantime if you have not already registered with ELTA, then please send me an e-mail with your FULL address, phone number and e-mail and I will ensure you are kept informed of developments.

Peter Scawen

19 December 2008