EQUITABLE LIFE MEMBERS

TORY STEREOTYPED LETTER RE EDM 901

Last Updated: Thursday, March 14, 2002 08:22 PM

There seems to be a stereotyped letter being used by the Conservative Party in reply to ELAS policyholders who have written to them regarding Roy Beggs EDM 910.  It seems extremely sad that they seem unaware that over one million people have been affected by the Equitable Life situation not to mention their families.  This in fact constitutes a fair number of the electorate and probably quite a large percentage of those people who actually vote.  If this is the way they treat their constituents over such an important and fundamental issue, one wonders why these individuals became MPs.  I am sure a letter to your local papers pointing out their short sightedness might make them realise that YOU voted them in. 

LETTER TO CONSTITUENTS

Many thanks for your email regarding Early Day Motion (EDM) 910 which 'calls upon the Parliamentary Ombudsman to initiate an immediate independent inquiry into the Equitable Life affair and the gross dereliction of duty of the regulators appointed by the Government to monitor Equitable Life policies'.

Tens of thousands of policy-holders have suffered financially as a result of the crisis at Equitable Life and the Conservatives believe that the regulators must be held to account. While the EDM captures the frustration of all affected policy-holders it does not reflect the latest position.

Conservative MPs have already achieved significant success in securing a change of policy from the Ombudsman in respect of Equitable Life cases. The Ombudsman initially deferred investigating the complaints arising from Equitable Life cases. But, following pressure from Conservative MPs, the
Ombudsman announced on 29th October 2001 that he would investigate the actions of the Financial Services Authority in respect of Equitable Life cases, covering the period from the beginning of 1999, when the FSA took over the regulation of Equitable Life, to the closure of new business in August 2000.

We remain concerned that the Ombudsman's investigation will not at this stage cover the earlier periods during which Equitable Life was regulated by the DTI and the Treasury. The Ombudsman has decided not to examine earlier cases until after the publication of the Treasury Inquiry by Lord Penrose.

The Conservatives have been instrumental in ensuring publication of the FSA report and the inquiry by the Parliamentary Ombudsman. Our members on the Treasury Select Committee are pressing for early resumption of that Committee's Inquiry into Equitable Life. The present Ombudsman Inquiry and the Penrose Inquiry are expected to report later this year and I can assure you that we shall press hard for proper compensation for any losses arising from dereliction of duty by the Government or regulators.

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As an Opposition Front Bench Spokesman, I do not sign Early Day Motions. This is because an EDM is a Parliamentary procedure by which Back Benchers are able to draw attention to a particular matter of concern.  However, I am grateful to you for writing on this important issue and will be keeping in close touch with developments over the coming weeks.