25/08/2010 - Please, write again to your MP
MPs have been lulled into believing that the Treasury's Statement reporting Chadwick's recommendation of circa £500 million compensation, a tenth of what is our due, is reasonable under the circumstances. It is not. Write to express your outrage to your MP – easily done via www.writetothem.com.
ASK your MP to honour their Pledge (if they signed) for FAIR compensation and not Chadwick's derisory sophistry: http://www.emagregional.org.uk/pledgedmps
ASK them to attend the Equitable debate in the Commons on 14 September and speak up for FAIR treatment on your behalf and to base compensation, as the PO proposed, on "relative loss". Seek a compassionate advanced early payment before Christmas to the with-profits annuitants, from at least an immediate £1 billion in cash (tax-free) with the rest of what's due, if the economy necessitates, over the life of the Parliament. WHY should the victims, who've been kept waiting for a decade for compensation be in the front line of draconian cuts?
25/08/2010 - TW's calculation is flawed
On 21 July the Treasury's actuaries, Towers Watson, wrote a letter to financial secretary to the Treasury, Mark Hoban, reporting their estimate of "relative loss" as being between £4 and £4.8 billion.
BUT, the template that they were obliged to quantify was very narrowly defined by Sir John Chadwick. For example, it excluded those PO findings not accepted by the Labour government and it ignored, against the instruction of the Divisional Court (and the Ombudsman), the 18-month period before January 1993 which EMAG estimates would add £750 million to the "relative loss" figure...
EMAG directors Nicolas Bellord and Paul Braithwaite have written a short paper explaining the deficiencies in Towers Watson's instructions, set by Sir John Chadwick, which Towers Watson were obliged to address. Read EMAG's report.
23/08/2010 - EMAG reports
Despite the holidays, EMAG has been very busy analysing all the new propaganda material published by the Treasury. There's a report by EMAG director Alex Henney's de-mystification of the self-important and hugely complex Chadwick report and there are several further studies. EMAG director Nicolas Bellord's has written a paper on the defects in the template imposed on actuaries Towers Watson and a 35-page detailed analysis of the Chadwick report.
EMAG has commissioned insurance expert senior Counsel, Anthony Boswood QC of Fountain Court whose preliminary views include:
"To the extent that 'absolute loss' can be equated with a proven, accrued loss such as in the example given above, and Sir John's reasoning involves applying a discount to absolute loss, his advice is logically indefensible and could not result in fair compensation to policyholders."
These items will NOT be published here at this time but will be made available to EMAG members, who have underwritten the work. There's also a template letter draft of what members might write to their MPs. Links to these will be provided in EMAG's next newsletter to members.
29/07/2010 - Timetable
Mark Hoban has suggested people make representations to him about his Statement through the summer. That would probably be about as effective as when Vanni Treves called for representations to his draft CONpromise scheme in October 2001 – when the scheme changed not one iota despite 24,000 written representations.
EMAG suggests that more positively you write, please during August, a polite but forthright letter directly to David Cameron and/or Nick Clegg, with copies to your own MP, your local EMAG regional team and Mark Hoban. We want the Coalition's leadership to realise the depth of anger at being offered one tenth of the now confirmed relative losses of £4.8 billions. Realise that 380 MPs have signed EMAG's Pledge to honour the PO recommendations and make FAIR compensation payments. Until proved otherwise, we should accept those pledges were made in good faith. Remember that 230 of our MPs are brand new.
The list of MPs who signed the Pledge is at: http://www.emagregional.org.uk/pledgedmps
There will be a very important Equitable Life debate in the Commons on Tuesday 14th September. So MPs have to be made aware that we are not going to accept Chadwick's deplorable methodology before then. That will be a pivotal day.
The Tory Conference in Birmingham between October 3trd and 6th will be a time for final political pressure and EMAG will be there.
The 'drop dead' date is 20th October when the quantum allocated to compensation will be announced. Please, play a part personally in ensuring that the sum is much much more than Chadwick's shabby proposal of just £500 million. Make contact through EMAG regional to find out how you can help: http://www.emagregional.org.uk/
29/07/2010 - EMAG asked Mark Hoban...
On 28 July EMAG wrote formally to Mark Hoban asking him to change the Commission's terms of reference, including:
"...The Ombudsman's forthright and unequivocal dismissal of the Chadwick Report makes it crystal clear that the Coalition's commitment to implementing the Ombudsman's recommendation should not be based on Sir John's work. As a building block in your consideration of how to compensate the victims of the Equitable Life scandal we suggest that Chadwick's report is now a dead duck. Dumping the Chadwick Report will necessitate redrafting the questionable Terms of Reference of the Commission that you have established..."
29/07/2010 - EMAG wrote to ALL MPs
In the immediate aftermath of the PO's devastating letter to MPs, EMAG followed up to all MPs on their last day in Westminster (27 July), including:
"EMAG will continue to campaign for fair compensation in the run up to the spending review. It is essential that MPs stand up both for their constituents and for the office of the Ombudsman and discard the Chadwick report to ensure the new coalition government delivers on its promise to implement the Ombudsman's recommendations. You will no doubt be hearing more from your constituency's Equitable victims over the coming weeks. They are understandably upset."
Read the whole letter.
13/07/2010 - Hoban is misleading on Chadwick
In the Commons on 12 July Mark Hoban provided this reply:
Mr Hoban:
"Later this month, the Government will provide a detailed update on the steps towards implementing an independently designed payments scheme. This will be alongside Sir John Chadwick's report on relative losses suffered by Equitable Life policyholders as a consequence of the findings of maladministration and injustice made by the PO."
But Sir John Chadwick's unchanged terms of reference do not require him to address 'relative loss arising from the PO's findings.' He isn't even addressing ALL the findings – only those accepted by the Labour government and as required to be amended by EMAG's successful JR. Chadwick's remit is to address five explicit questions such as 'disproportionate impact' (means testing under another name) and possible slicing of payments for the contributory negligence of accountants, actuaries, the society and even the members – issues not even within the PO's remit.
This is not the first such misinformation. On 26th June, Mark Hoban gave a written answer to Phil Woolas MP:
"Sir John Chadwick is advising the Treasury on the relative losses suffered by Equitable Life policyholders in relation to those accepted cases of maladministration resulting in injustice."
To better understand the mismatch between the PO findings and 'The Chadwick Process' read Nic Bellord and Paul Braithwaite's detail evaluation.
17/06/2010 - EMAG wrote to all MPs who pledged
Given EMAG’s concerns, we intend to re-start the all-party group of MPs. We wrote to all 380 MPs who signed EMAG’s Pledge to bring them up to date.
04/06/2010 - EMAG membership rockets to 37,000
In April EMAG mailed 350,000 Equitable Life members from the year 2000 register to ask them to lobby their MPs and to join EMAG at this 11th hour. We were victims of our own success: More than 15,000 new EMAG members were recruited, causing our small organisation a massive headache in registering and banking. This means that more than 37,000 Equitable Life members have paid subscriptions to EMAG and we've never been bigger or stronger.
04/06/2010 - Equitable Life AGM 10 May
This was the Equitable Life's first AGM under the stewardship of Chris Wiscarson and Ian Brimcome and notable for the change in atmosphere. There's a new focus on value and reducing overheads. Charles Thomson's exit package was the subject of harsh words, but it had been approved by the now departed remuneration committee chair, Jean Woods. The new duo in control went out of their way to be supportive of EMAG and to stress the shared objective of fair compensation. The two boards are working co-operatively for the first time in nine years. EMAG director Colin Slater was invited to speak and he was warmly applauded. This rapprochement is welcomed.
04/06/2010 - Paul Braithwaite celebrates
Local paper Camden New Journal in London reported Paul Braithwaite's pleasure (27 May) at the result of his ten years' fight for compensation being included in the Queen's Speech.
http://www.camdennewjournal.com/news/2010/may/victory-equitable-life-battle
04/06/2010 - Tom Lake has resigned from EMAG's board
The board of EMAG has reluctantly accepted Tom Lake's resignation. Tom was one of the founders of EMAG in August 2000 and he has served as secretary and chairman in past years. The board expresses its gratitude to Tom for almost a decade of selfless service. Perhaps his greatest contributions have been as one of the two personal petitioners to the European Parliament, which resulted in a thorough Committee of Enquiry and report (EQUI). Also he was a consistent bridgehead to Labour MPs with helpful insight into the Labour Government.
23/03/2010 - Ernst & Young in the Private Eye
Private Eye 19 March (P 32) reveals the depravity of Equitable’s old auditors E & Y and describes the practice’s behaviour in sanitising Lehman Brother’s dodgy over-streeched debt. At some length it also alludes to the Joint Disciplinary Scheme (JDS) accountant investigation about Equitable now awaiting the Appeal verdict announcement. This is imminent and will not help Equitable sufferers in two painful ways. First, however big the fine, the levy goes into the coffers of the accounting profession’s body. Secondly, any finding against these auditors will be seized upon by Sir John Chadwick as an excuse to formally salami-slice down his proposed Equitable payment scheme. You could call that lose lose.
16/03/2010 - EMAG concludes 'The Chadwick Process' is a sham
EMAG took several days to read, analyse and reflect on the 109-page convoluted Third Interim Report from Sir John Chadwick. But the reluctant conclusion of the directors at the EMAG board meeting 9 March was that he has now revealed his true colours as a front for the Treasury. There is no evidence that EMAG or other policyholders’ submissions have had an iota of influence on what is looking like a shabby Treasury stitch up.
EMAG has decided to make no further contributions as they could have implied as an endorsement. It was clear that EMAG’s very extensive and constructive submissions, made in good faith, were being disregarded as a matter of course as 'The Chadwick Process' progresses towards the Treasury’s desired outcome. We conclude that it was no coincidence that Sir John wascarefully chosen for this poison chalice.
Read EMAG’s letter to Sir John
Read EMAG’s Press Release
And the BBC’s coverage
Even The New Statesman!
10/03/2010 - Dr Tony Wright's legacy
On 4 March backbench MPs showed their teeth and defied front bench attempts at damage limitation by Harriet Harman and Sir George Young. Two enormous changes were voted through. First, the chairs of select committees will be voted for by secret ballot instead of indulged by the PM to favourites as safe-pair-of-hands (like the pathetic John McFall). Second, the Commons programme will be determined by a business committee of front and backbenchers. This is what Dr Wright’s own PASC committee had recommended. It is a terrific legacy for Dr Wright, who is standing down due to ill health. All EMAG sufferers owe him a debt of gratitude for his committee’s repeated PO investigations and support for Ann Abraham’s office. EMAG’s Paul Braithwaite wrote an immediate note of congratulations to him.
Read more in the Guardian here...
10/03/2010 - Harrow EMAG group success
Both Harrow MPs have pledged support for pension holders who lose thousands of pounds in the near-collapse of Equitable Life. ...Following a series of prompts from lobby group Equitable Members Action Group (EMAG), Tony McNulty and Gareth Thomas have now signed up to the Parliamentary All Party Group for Justice for Equitable Life Policy Holders. The group is calling for full compensation from the government for the money that was lost.
Read more in the Harrow Times here...
24/02/2010 - Harmony is breaking out
There’s a breakthrough in co-operation that’s unprecedented between EMAG and the Equitable Life’s board. This is down to the new broom, chief executive Chris Wiscarson. EMAG is much encouraged by the co-ordination of representations to Sir John Chadwick, which bodes well for further joint actions.
Note that the Equitable’s AGM is to be held in Westminster on the morning of Monday May 10th.
16/02/2010 - Sterling work by Dr Tony Wright
A beacon of integrity in the Labour Party has been Tony Wright and the fantastic constitutional work his select committee on Public Administration (PASC) has done - not least in upholding the office of the PO and standing up for Equitable’s victims.
Wright’s committee’s radical Parthian Shot is to propose 'Reform of the House of Commons', such that the timetable of the House of Commons should in future be fixed by a committee consisting of the government, opposition and members from a committee of backbenchers. It is due to be debated in the Commons on 23 February but the government has delayed the Commons vote on it malevolently until nine days later, on Thursday 4 March. Will MPs once again prove they’re just worthless cannon fodder or could we actually see the a government defeat at the hand of backbenchers – at last?
Read More...
14/12/2009 - Equitable’s new chief exec reviews his first 100 days
An odd article in the Daily Telegraph on 14 December which spent more column inches sanitising Vanni Treves’ eight year tenure such that it looks like he fought FOR policyholders and alongside EMAG! Notwithstanding, Chris Wiscarson, chief executive, seems to have started his tenure with high energy and an open mind. EMAG is seeking to build new bridges with Equitable Life.
"Chris Wiscarsom wants to focus on the future after 10 years of hurt..."
Mr Wiscarson adds that he will also be looking to invest the company's assets 'wisely'. These currently stand at about £7bn. "I felt some of the things we were invested in before were too risky. We had too many equities and property, so I've sold £100m in equities and put properties for sale as we want to be sure we can pay policyholders."
Read the article.
27/11/2009 - Equitable will move its administration
In Jan/Feb 2001 Chris Headdon and Charles Thomson negotiated a punitively expensive 10-year administration contract with HBOS subsidiary, Clerical Medical.
The first major initiative of the Society’s new chief executive, Chris Wiscarson - who took up his position on 1 September - was to negotiate a new admin contract. This one, which starts formally when the 10-year one ends in March 2011, it is claimed, will save Equitable £8m in its first year and it is apparently for 30 + years! It will involve 240 redundancies in Aylesbury and a possible shift of admin to Mumbai to the new operators, HCL Technologies. Read the press release from Equitable Life
It is to be noted that although Vanni Treves left Equitable Life in August, every single current director, including the new chairman Ian Brimecome, were appointed by Treves.
17/11/2009 - EMAG writes to Sir John
It had been EMAG’s intention to wait for sight of the Treasury’s revised instructions to Sir John before starting a dialogue, which we wanted to be based on a firm understanding of Sir John’s new remit. Not unreasonably, we expected that to be made available within a few days of the JR judgement on 15 October. To that end Paul Braithwaite wrote a letter to Sir John on 27 October explaining the EMAG’s board position. But the Treasury has caused one more delay and the board has hence decided to give Sir John sight now of EMAG’s 'Principles of Compensation' Report. Read EMAG’s two letters to Sir John.09/11/2009 - Ann Abraham before PASC
On 5 November Ann Abraham appeared before PASC to account for her year. EMAG directors attended. Much of the time was spent on Equitable. It was a frustrating performance for the lay viewer, since Ann Abraham preferred to leave responsibility squarely with MPs whilst keeping her head below the parapet. This article in the Independent captures the disappointment.
Watch the session.
28/10/2009 - New EMAG regional committee's
In October there have been new EMAG committee meetings in Manchester (South); Nottingham; Carshalton and South London; Medway; Stourbridge; Taunton; Southampton; Wirral- anf Birkenhead; Ealing; Essex andHertford. Have you checked out your local group yet?
28/10/2009 - EMAG met Equitable's new MD
On 14 October, three EMAG board members had an introductory meeting with Equitable's new managing director, Chris Wiscarson. Lines of communication have been established and EMAG's board has an open mind on a possible new era of co-operation.
28/09/2009 - Equitable board
Representatives of EMAG's board will be meeting the new chair and chief executive informally in mid-October. In addition to the new chairman and chief executive appointments (see below), Mark Earls, who joined ELAS in 2002, has now been made up from chief operating officer to executive director.
Read more about the appointment...
01/09/2009 - Vanni's history
Quietly, over the August Bank Holiday weekend, a chapter in the sad recent history of Equitable Life ended with the departure of chairman Vanni Treves and his acolyte chief executive, Charles Thomson.
The full extent of Mr Treves' stitch-ups are too numerous to list but amongst the most regrettable were his U-turns both on cuts to with-profits annuitants after the compromise in 2002 and his pledge to sue the government if Lord Penrose provided evidence of maladministration. There were four wasted years and a staggering £50m legal fees for humiliatingly failing to obtain compensation from Ernst & Young and 17 former directors. To late-joiners and with-profits annuitants he asserted that there was absolutely no merit in pursuing claims of mis-selling against the Society - followed by near full settlements with the few hundreds who went to law, leaving tens of thousands swinging in the wind. His actions had the unfortunate effect of effectively protecting the Labour government's backside for many years. Only after the publication of the PO's report did his views appear to finally diverge from the Labour party and he became increasingly critical of government in 2009.
Throughout his 100-month tenure as chairman of Equitable Life he was unswervingly hostile to EMAG, rejecting our several olive branches and refusing to back us in Europe or on our recent JR.
The new regime starts on 2 Sept. EMAG has suggested an informal meeting with the new chairman and chief executive and we are very pleased to report that this has been accepted. Hopefully, a more constructive chapter is beginning...
01/09/2009 - Will you sign this No 10 Petition?
"The 328 MPs who signed EDM 1423 asked the House to note that the Parliamentary Ombudsman had taken the very unusual step of using her powers under the 1967 Act (dubbed the nuclear option) of issuing a further and final report on Equitable Life. They said that the Government's response to the Parliamentary Ombudsman's earlier report was inadequate as a remedy for injustice and that the Government should accept the Ombudsman's recommendations on compensating policyholders who have suffered loss."
Sign the Petition
01/09/2009 - EMAG's regional activity gearing up
Subsequent to the meeting with 50 regional organisers on 11 July, the pace has quickened. There have been recent EMAG meetings to form organising committees in the Home Counties, North London, Gloucester, Reading, Edinburgh - with 10 more planned in September. Read a write-up of the Gloucester committee's formation meeting on 20th August
Now would be a very good time to join your regional group as the general election, which is sharpening the mind of ALL politicians, is probably only eight short months away.
Read More...
10/08/2009 - Parliamentary group has 146 members
MPs continue to sign up to the all-party group for Justice for Equitable Life policyholders, even during their 12 week break from Westminster. Do you realise that Parliament only sits for 20 weeks of the year? When it returns on 12th October, perhaps we can now hope to see MPs rise up and demand a debate on Equitable Life in the House of Commons. 335 MPs having signed EDM 1423 certainly warrants it. Has your MP joined the all-party group for justice yet?
03/08/2009 - Guardian's eye view
The long-time interested Guardian journalist, Rupert Jones, attended the first morning of the JR in Court. Hilariously, at one point he dropped his pen, which rolled far away – an embarrassment for a journalist trying to take fastidious notes! Read his writeup which appeared 22 July.
