EQUITABLE LIFE MEMBERS
SOUTH WALES COUNTRY GROUP
Dear Mr Aylett
Would you kindly pass the following communication to the Select Committee Chairman for consideration in the meeting with Ms Ann Abraham Parliamentary Ombudsman scheduled for Thursday 6th March 2003
***************************************
To: Mr Tony Wright MP Chairman Select Committee on Public Administration
From: Wales Equitable Members Regional Help Group
04 March 2003
Dear Mr Wright
This communication is from the Wales Equitable Members Regional Help Group
We would remind you of the demonstration at Westminster on 29th October by the combined Equitable Action Groups E7 requesting the Parliamentary Ombudsman to extend the date span of his Inquiry.This demonstration was supported by MPs from all parties.
The Wales Members Help Group had a presence at this demonstration and passed this message to the PM :- " DO YOUR DUTY EXTEND THE PERIOD OF YOUR INVESTIGATION NOW! IGNORE THE TREASURY PENROSE "DELAY & DISTRACT INQUIRY""
The demonstration coincided with the appointment of Ms Ann Abraham as Parliamentary Ombudsman and AT LAST we expected action. How wrong we were - instead, she has been as obdurate as her predecessor and despite the continued and increasing suffering of Equitable Members 4 months has passed since her appointment and she still continues to hide behind the Penrose Inquiry and states that she has no intention of extending her investigation to the early nineties until Penrose is published.
Equitable Members in Wales, in concert with the E7 Action Groups urge the Committee - to which the PM is accountable - to force an explanation and justification of the stance she has taken .This behaviour is seen as heartless and irresponsible with the continued deterioration of the Equitable with profits fund and since the demonstration in October last a cut of 30% in annuitants’ pensions with further cuts in the future a distinct possibility.
We would remind the Committee that the PM has failed to respond despite (a) the Treasury Select Committee in its 10th report of 2 years ago concluding that there was a prima facie case of maladministration dating back to 1993 (b) the concerned voices of many MPs and (c) referrals by over a third of all the MPs in Parliament.
We strongly believe that their has been serial Regulatory failure and this should have been urgently investigated by the Parliamentary Ombudsman on the closure of the Society - action is now seriously overdue. We have lost confidence in the Financial Regulators and we are now losing faith in the Watchdog of Public Administration. Citing that Penrose will provide an answer will not "wash ". Penrose may provide "lessons for the future" but it is not a public inquiry, has no power to place blame or award compensation and reports to the Treasury - a possible culpable party in regulatory failure. In contrast the PM’s Office has powers which Penrose does not possess.
When you meet the Parliamentary Ombudsman on Thursday next we trust your questioning will take account of the sentiments outlined above and results in your Committee persuading the Parliamentary Ombudsman to change her mind and to face up to the responsibility of her Office.
Your sincerely
H M White
Co-ordinator
Wales Equitable Members Regional Help Group
Visitors at the South Wales Launch meeting 22 September 2002
I felt that I should attend the demonstration and turned up with placard with following ;- MESSAGE FROM THE WALES REGIONAL ACTION GROUP FOR EQUITABLE LIFE VICTIMS - DO YOUR DUTY EXTEND THE PERIOD OF YOUR INVESTIGATION NOW! IGNORE THE TREASURY PENROSE "DELAY & DISTRACT INQUIRY
I was smothered by press photographers but did not appear in any newspaper.In the context of a different Equitable article, however, the photo was published in the Money Telegraph on 20 Nov
The Welsh representative Plaid & Liberal MPs were there and introduced themselves to me. There was a good turnout of MPs supporting the Action groups but Labour MPs were noticeable by their absence The was a good turnout of conservative MPs and the Action Groups were received by the Shadow finance ministers in Portcullis House after the photo-call demo when an Anniversary cake was presented to the Ombudsman. The Directors of Equitable did not support the action groups request of the Ombudsman to extend his Inquiry. Despite this the Ombudsman who was retiring a few days later had the arrogance to make a press announcementon the same day stating that he would not be changing his position.
Recently we have received the news of the savage cuts in Annuitants pensions which is a further devastating blow. This has fully justified the recent increased pressure by the action groups. If you haven’t yet read them I recommend that you read on the EMAG website the recent scathing letters to The FSA directors and to the newly appointed Parliamentary Ombudsman. I have suggested to Paul Braithwaite, general secretary of EMAG that he writes to Parliamentary Finance Select Committee chairman in similar vein. He thinks this is a good idea so we should expect such a letter soon.
The action groups will also be writing to
The Chairman of Equitable, Vanni Treves to request
the support of his Board in lobbying the Government in our claim for
compensation due to serial regulatory failure , on behalf of all of their
policyholders. They suggest you add your voices by individually writing to
Vanni Treves and also your M P
Address for Vanni Treves
Vanni Treves Chairman Equitable Life City Place House 55 Basinghall Street London EC2V 5DR,
The address of your local MP can be found at your local library or from links on the ELMHG website.
18/10/02
Hello Everyone
As you know the action groups are staging a demonstration and media "photo shoot" on St Stephen’s Green outside Parliament at 12pm o the 29th October. I’m afraid we don’t have sufficient numbers at present in the South Wales group to organise chartered transport to London and anyone intending to attend would have to make their own way.
It may, in fact, provide more publicity if we could present an Anniversary letter and also possibly a cake for the Parliamentary Ombudsman to someone significant at the National Assembly, for example The First Minister or Leader of Plaid Cymru on the 29th at say midday, to synchronise with the London demo. -The local press might be interested enough to send a photographer..
Unfortunately our numbers are such that we would not be able to marshall a crowd. but we want at least 5 to be present and in the spirit of "spin" and to account for the small numbers we would claim to be the coordinating committee - partners could boost the numbers..
Because of our small numbers at present the situation is difficult but as coordinator of the Wales group I feel obliged to put forward any feasible suggestions to further our case against failure of the Regulators. In summary ,therefore, could you e-mail me in quick time with answers to the following
1 Are you considering attending the London demo on the 29th ?
2 Are you available to turn out at the Wales National Assembly on 29th as a " coordinating committee member! " if I can arrange something with the National Assembly ? If yes would you be alone or with your partner ?
An early answer would be appreciated so that I can assess the position ---don' t be embarrassed in replying NO
Regards
Harry White Coordinator - South Wales ELM Regional Group
17 October 2002 Harry White says:
7 October 2002 Letter to Charles Thomson from Harry White
A launch meeting was held on Sunday 22 September 2002
Report
of Meeting on 22nd Sept 2002
Equitable members who gathered at the the Holiday Inn North Cardiff on 22nd of Sept agreed to form a South Wales Regional group of ELM. Welcome to all who attended. All that attended are now fully aware of the Action groups and the wealth of information available and links to other action groups on the ELM website.
They agreed to:
1 Request via their M P’s that the Parliamentary Ombudsman issues his “mini” report on the FSA and extends his Investigation back to 1988 without hiding behind Penrose
2 Engage in Sticker/poster campaign using ELM & EMAG stickers issued at meeting
3 Will be prepared to attend any public publicity campaign if arranged and when appropriate in the future
4 Agreed with proposal to sent open birthday greetings to Parliamentary Ombudsman via local media (see below)
5
Supported the sending of an e-mail to 3 Welsh MP’s who signed
the edm asking them if they would similarly send Birthday
greetings to Parliamentary Ombudsman
Material sent to local media with hope of publication
South Wales Regional Group of the Equitable Life Members Help Group send open Birthday Greeting to Parliamentary Ombudsman
Policyholders with the ill-fated Equitable Life Assurance Society met at the Holiday Inn, North Cardiff on 22nd September for a meeting lasting three hours. As victims of the Equitable scandal they unanimously agreed to form a South Wales Regional Group of the Equitable Life Members HELP Group.
Liz Kwantes, the driving force behind the National Help Group and Bob Widdess, Chairman of the action group ELPHAG were extensively questioned by the members present on the present state of affairs .with respect to Equitable Life. Paul Braithwaite, General Secretary of the action group EMAG sent his apologies due to holidays. All three action groups work closely together in the interest of Equitable victims.
All present agreed to engage in a car sticker and poster campaign to .publicise the existence of the Action groups to other policyholders and with this and other future publicity activities to keep the Equitable Affair in the public eye.
The South Wale Group now has its own Web page on the ELMHG website --www.equitablelifemembers.org.uk together with a contact email address swcg@equitablelifemembers.org.uk which together provide a communications link.
At this inaugural meeting it was decided to send the following open message to the Parliamentary Ombudsman:
“The South Wales victims of the of Equitable Life scandal associated with the Equitable Life Members Help Group wish to send an open First Birthday greeting to the Parliamentary Ombudsman relating to his letter to M P’s dated the 29th Oct 2001. This letter stated that he proposed to conduct a statutory investigation into the Financial Services Authority’s actions on behalf of the Treasury, covering the period 1 January to 8 December 2000.
These victims hope that next year they will not again be sending another UNHAPPY RETURNS OF THE YEAR greeting to the Parliamentary Ombudsman
With this greeting they also wish to tell the Ombudsman that they see no reason, whatsoever, for his delaying an extension of his investigation into members legitimate complaints back to 1988 using Penrose as an excuse for delay. The terms of reference of Penrose are entirely different to the role and duty of the Ombudsman and victims should not have to wait for ever to receive a speedy investigation into their just complaints. Even without benefit of Penrose there is a plethora of legal opinions in the public domain many of which have been obtained at the expense of the dwindling victim’s with profits fund as well as an authoritative academic opinion commissioned by the action groups.”
Handout for those Members of Equitable Life who attend Meeting
held
on 22nd Sept 2002
By
Harry White - One of the many victims of the Equitable Scandal
(1)
I called this meeting using local Radio & Press announcements to see if
there is a wish
to
form a South Wales Country Group
of the Equitable Life members Help Group (ELM).
(2
) I embarked on
this individual action, since someone has to make the first move,
as a catalyst to get local members together in one place in order to :-
(a)
ensure that as many local members were aware of the various Action Groups
that exist and in particular of the Equitable Life Members Help Group
which provides a superb
information Web site.
This
site gives links to all relevant articles in the National Newspapers,
links showing the history of the unfolding saga, reference to legal
opinions, Parliamentary, Treasury & Financial Services references,
model letters for complaints to MP’s, Financial Ombudsman, Parliamentary
Ombudsman, Penrose Inquiry, etc. and links to the primary Action
Groups EMAG & ELPHAG as well as sub groups with special interests..
(b)
Urge the members present at the meeting to join the Action Groups EMAG,
ELPHAG or both.
(d)
Gauge
the local interest in the formation of a South Wales Country Group of ELM.
(3
)
Before the meeting considers
whether to form a South Wales
then it must consider what useful function would it provide.
(a)
A number of ELM branches have been in existence formed throughout
the UK , for some time . These appear. as far as I can ascertain, to have
developed by word of mouth and/or by posters in libraries, etc and either
take the form of local meetings or e-mail communications where members
discuss their individual problems with a view to obtaining possible advice
or mutual support. Recently, I think that a
number have embarked on car sticker and poster campaigns.
(b) Discussion about individual
possible technical problems may be seen as one of the
useful functions for a South Wales Branch, if formed,
If this is the case I would like a volunteer or volunteers to coordinate
the branch because I’m not
the man for this sort of job.
Personally,
I feel that best advice or useful discussions between individuals with
similar policies and problems may be found on the discussion boards to the
ELM website provides links
because these would possibly provide a wider source of opinions on
individual policy contract interpretations or procedural questions.
(d)
To agree that due to
Regulatory Failure the Treasury must provide Compensation
In
my opinion and that of the Action Groups the
Equitable
Management were incompetent but more importantly the successive Government
Regulators - responsible to the Treasury - utterly failed Equitable
Members by
not preventing Management incompetence and ensuring that sound business
management was followed and safe solvency levels maintained. The
regulators should not have allowed Non Gar pension policyholders funds and
also amazingly Life funds (e.g endowments) to be
included in the same with profits fund as Gar pension policies from
the outset and further, should not have allowed the compounding of this
fundamentally disastrous and unsound
action by subsequently operating at dangerous solvency levels. Thus, it
can be claimed that
the Regulators were guilty of Maladministration
and
in consequence should compensate Equitable members for the losses suffered
by the virtual collapse of their society.
The
Parliamentary Ombudsman is the official challenger of the Regulator for
Maladministration but because the Government set up the Penrose Inquiry
the Ombudsman has limited his own inquiry to a time span which does not
include the vital period from 1988 when Non Gar policies were first sold.
Similarly the Treasury Select
Committee has suspended it own Inquiry until Penrose is published.
EMAG
see the Penrose Report as a Government tactic to diffuse members criticism
of Regulatory failure, to move the scandal out of the media limelight and
hope that members will lose heart in maintaining a fight for Government
compensation for regulatory failure in the case of Equitable Life.
(d)
To agree that the Treasury is the only source of significant compensation.
(e)
To agree that the Treasury will only act in the face of continued and
vigorous action by members
Experience
tells us
that Governments are notorious in not acknowledging any failure on
their part particularly if expense is involved, therefore, any claim
for compensation, even if valid, will require a very hard fight
before it is met. The Action Groups are doing there best in continuing
this fight but they are meeting the usual bureaucratic resistance. For
success they need as many members as possible and if necessary - in the
manner of the age we live in- the ability to stage a public peaceful but significant public
demonstration when thought necessary to achieve maximum media attention.
THIS IS WHERE THE ELM COUNTRY GROUPS COULD BE USEFUL
in
attending demonstrations outside Westminster, etc or staging public
presentation of petitions to local M P’s or in South Wales to the First
Minister at the Assembly.
THIS
IN MY OPINION WOULD BE THE MOST USEFUL FUNCTION OF A SOUTH WALES ELM GROUP
INDIVIDUALLY
AND AS A GROUP WE MUST INSIST THAT THE PARLIAMENTARY OMBUDSMAN MUST
COMMENCE HIS ENQUIRY COVERING
VITAL PERIOD FROM 1988
NOW !! HE MUST NOT
WAIT FOR COMPLETION OF THE PENROSE INQUIRY.
Equitable
Life Members Help Group (ELM) http://www.equitablelifemembers.org.uk/
: ELM was initially set up by about eight people with EL policies living
in the Maidenhead area to offer support, through a website, to Equitable
victims. The idea was originally to offer a portal to those who could
offer help and advice but it has developed into a superb information site
for Equitable members and headed by Liz Kwantes is now regarded as an
effective action group and media reference
Equitable
Members' Action Group (EMAG) http://www.emag.org.uk/
: Formed by a group of Members in
the London Area
Equitable
Life Policy Holders' Action Group (ELPHAG) http://www.elphag.co.uk/
: Formed by a group of members in the Bristol/ Gloucestershire area
NOTE
If it is decided to form South Wales Country Group (s) then I feel that
(2)
The expenses should be kept effectively at zero. Since telephone and
postal costs can be
considerable
communications should normally operate through the ELM website www.equitablelifemembers.org.uk/
on
the page allocated to the South Wales Country Group.
For
any questions ,comments or difficulties e-mail swcg@equitablelifemembers.org.uk