29/07/2008 - Content for a letter to your MP
Many EMAG members have asked for a template letter to send to their MP. EMAG advises against “cookie cutter” letters which are treated with less attention that personalises heartfelt contents. However short your letter (or email), do ask your MP to read the PO’s report and to support her recommendation for a compensation fund to be set up under an independent tribunal. And, if you live in a Labour seat, the majority of which are now marginals, please write to the Tory opposition candidate too.
To provide seed for thought and inspiration EMAG has collected a dozen examples.
Please feel free to email copies of your own for possible inclusion to: paulbraithwaite@gmail.com
29/07/2008 - The FSA’s AGM
On 24th July EMAG directors Paul Braithwaite and Chris Carnaghan ambushed the board of the FSA and berrated outgoing chairman Callum McCarthy over Equitable. The limp answer from McCarthy was, at first, he couldn’t comment “for legal reasons”. Poppycock! Read the press coverage and the question asked.
29/07/2008 - Treasury apologist?
John McFall, chairman of the Treasury select committee, has declined EMAG’s invite to follow up the PO’s report. Hes appear to be protecting the vulnerable Government from further opprobium on financial mis-management. Hiis only written commitment is to look again after the Treasury has responded in the autumn. He wrote back to EMAG that he: - “may then return to the issue, and in particular to the public finance aspect."
His committee is really the only checks and balances on the FSA. The last time TreasCom looked at Equitable's regulation was in 2001.
22/07/2008 - EQUI demands
The EQUI report of 19th June 2007 has yet to receive any reply from the UK Government, which shows two-fingered contempt towards Brussels. The president of the Petitions Committee, Marcin Libicski, has invited Ann Abraham to present her Report in Brussels on October6th/7th
The chair of EQUI, Mairead McGuinness, has spoken up for European victims, pledging to press for action
22/07/2008 - PASC and TreasCom
Dr Tony Wright, the admirable chair of the select committee on Public Administration (PASC), the body to which the PO reports, has announced he is to stand down at the next election due to serious health problems.
The PASC met Ann Abraham and her team on the morning the report became public. There will be a series of PASC meetings to review the Equitable report. The first will be with Ann Abraham, probably in w/c 13th October. It is to be hoped that Dr Wright, who is passionate about the constiturtional importance of the office of the PO will remain at the helm on this report and Parliament’s response, as he did so ably for the occupational pensioners.
Astonishingly, the chairman of the Treasury select committee is expressing doubts as to whether his committee will look at the PO’s report, arguing that it relates to a regime that was replaced more than six years ago. It seems a more likely explanation is that John McFall is protecting the Government from further financial embarrassment. Hopefully, the Tories on the Committee, in particular, Philip Dunne, can persuade him.
22/07/2008 - The Tories get off the fence
Finally, on July 16th George Osborne saw political mileage in supporting Equitable’s victims and, for the first time, undertook to set up a payment sheme if the Government doesn’t.
Here’s the exact wording:
"We Conservatives forced the government to allow the Parliamentary Ombudsman to investigate the regulation of Equitable Life and we welcome her report. The Ombudsman rightly highlights regulatory failings, including those between 1998 and 2001, when Gordon Brown and the Treasury had responsibility for this area. He cannot escape the blame for what happened on his watch.
We're glad that the report accepts the principle that there should be payments to those who lost out. The job now is to assess how much those payments should be and to whom they should be paid. We have to be straight with policyholders. As the Ombudsman makes clear, policyholders cannot expect to receive payments for the full losses suffered and any payment scheme must be consistent with sound public finances.
It is up to the government now to admit its responsibility, issue the apology that the Ombudsman demands and create the payment scheme. If it doesn’t, we will."?
22/07/2008 - Equitable for sale (yawn)
Yet more non-stories that the Society’s remaining 270,000 members in the £6.5bn with-profits fund may be subject to bids from Swiss Re or Prudential.
Even on Charles Thomnson’s busiest of days, 16th July, he was apparently working on preparing "the data room".
22/07/2008 - Accountants Joint Disciplinary Scheme (JDS) rumbles on
The hearings, held in camera last year, have still not led to a published report, expected sometime later this year. Theoretically, the auditors Ernst & Young could recive an eye-watering fine for failing to “qualify” the Equitable’s accounts for 1999 and 2000. E & Y were again represented by the very impressive silk, Mark Hapgood QC, who performed so well for them in Court 76 that they got off Scott-free there. The accountancy body and not the victims would be recipients of any fine. Another fine example of British professions and justice!
11/07/2008 - The chair of EQUI demands compensation
Irish MEP Mairaid McGuinness is quoted in the Daily Telegraph 11th July demanding that Equitable Life sufferers must be compensated.
“The European Parliament will push for compensation to be paid to Equitable Life policyholders, regardless of any recommendations made by a new report slamming the Government for its role in the demise of the mutual insurer………………..
MEP Mairead McGuinness said:
"In any civilised society, or democracy, where the regulator has failed, people deserve to be compensated for the losses incurred. It has been appalling."…………
27/06/2008 - EMAG at the EU Parliament, again
On Wed 25th June EMAG was invited to present to MEPs on the EU Petitions Committee an update on progress (or not!) in the UK. Read the EMAG speech, delivered by EMAG petitioner and director, Tom Lake. The Committee will be sending the EU President a letter updating him on the lack of response from the UK and detailing the EC’s progress on the 47 EQUI recommendations.
Afterwards, EMAG directors Paul Braithwaite, Tom Lake and Leslie Seymour had lunch with MEP Sharon Bowles, who is one of the drivers on framing the next generation of pan-European reguation known as Solvency 2.
03/04/2008 - No action at the ECJ
An EMAG member enquired of rapporteur Diana Wallis MEP why the Commission hasn’t instigated proceedings in the European Courts of Justice: The reply was:
”The European Parliament does not have the power to take the UK government to the Court of Justice. The EC and EU Treaties make it a law-making body, not a law-enforcing body. The Commission is empowered to take Member States to court for not applying directives. However, the Commission's practice for the last fifty years has been to take them to court only when the violation is still continuing (as opposed to past).
The Commission claimed before the European Parliament that the violation was only in the past, and that therefore they were powerless.”
Diana Wallis had a letter published in The Independent pointing out that her EQUI report in June 2007 had many of the same findings as the recent FSA’s own.
09/02/2008 - Alistair Darling’s letter
The EU President wrote a stern letter to Gordon Brown on 5th December asking for a response to the EQUI Report and the 47 recommendations contained therein.
Gordon Brown passed it to The Treasury and eventually the Chancellor, Alistair Darling, sent a reply letter with a face date of 11th January- though not available to MEPs on the Petitions Committee on January 23rd.
EMAG has seen this letter and its content is totally anodyne and unhelpful in the extreme. Unfortunately and unhelpfully, the Treasury has marked it "Confidential". How typical. EMAG has made a formal request to the EU Parliament to release the document but that needs the UK's consent. This Government doesn't know the meaning of the word "transparency".
09/02/2008 - Transcripts of the Petitions Committee
EMAG has had the MEP speeches at the EU Parliament Petitions Committee hearing on EQUI on 23rd January transcribed. Read what MEPs Diana Wallis, Sir Robert Atkins, Mairead McGuinness and Michael Cashman had to say.
25/01/2008 - EU Petitions Committee revisits ELAS
The Committee, which was the progenitor of the EQUI Temporary Committee of Inquiry, revisited the issue in the light of the UK authorities contemptuous failure to respond in seven months to the report. Paul Braithwaite of EMAG gave a short update, followed by responses from MEPs from several parties: Diana Wallis, Sir Robert Atkins, Mairead McGuinness and Michael Cashman. Please, DO take the time to read the text of EMAG/Paul Braithwaite’s presentation.
Perhaps the most suprising comment was in winding up the debate, loyalist Labour Petitions Committee deputy chairman (and personal pal of Gordon Brown), Michael Cashman MEP said this:
"I'm a member of the British Labour Party, I'm a member of the National Executive of the British Labour Party but I make the same demands of a Labour Government as I do of any other Government and that is why I support fully the fact that we should have an early meeting and seek this concrete proposal and agreement that the Parliamentary Ombudsman's recommendations will be implemented. That seems to be the fair and just resolution."
EMAG intends to publish verbatim transcripts of the MEPs and the Commissions speeches. See press coverage.
11/01/2008 - EU President’s letter to Gordon
On 9th January the full text of the EU President’s letter to Gordon Brown (dated 5th December, 2007) became available. Read the letter.
Despite the stern words, Gordon Brown had not replied as on 9th January but he had passed it to The Treasury, who are quoted as saying: “….it was unable to say very much until the completion of the?parliamentary ombudsman's report” Not that The Treasury has said ANYTHING at all on the subject! Read the Guardian’s report.
08/01/2008 - Justice for OPs, finally
On 17th December Gordon Brown finally capitulated, under pressure from Secretary of State for the DWP, Peter Hain, and Frank Field MP, to honour the recommendations of the Andrew Young report. His recommendation was that the victims should receive the same compensation as would have been forthcoming under the legislation that set up the Pensions Protection Fund (PPF). Extraordinarily, as late as mid-December The Treasury was still resisting.
The day before this volte face there was an excellent article in The Observer by Jill Insley describing the plight of victims of both the OP and ELAS scandals. This quote, for example, from aggrieved ELAS pensioner Gabrielle de Pauw:
“'What makes me furious is the attitude of the government, that can within a few days bale out Northern Rock to the tune of an extreme amount of billions (and I bet us taxpayers don't get it back, despite what Alistair Darling says), but happily put the boot into people like the Equitable victims and those poor souls whose occupational pensions have evaporated when their firms went bust.”
Read More
08/01/2008 - Liz Kwantes, MBE
Some pleasing news to start the year is that Liz Kwantes, a stalwart campaigner for ELAS and OP sufferers, was awarded a “gong” in the New Year’s Honours List. EMAG was amongst those who had proposed her.
13/12/2007 - Angry EU reaction to UK’s contempt
The President of the European Parliament, Hans-Gert Pöttering, wrote to Gordon Brown on 5 December 2007 asking the Prime Minister to "ensure that the authority of the Parliament and of its right of inquiry………… are not prejudiced by the lasting lack of formal response by the British Government".
On 11th December the EQUI rapporteur, Diana Wallis MEP, issued a statement that the UK’s lack of response is totally unacceptable:
Speaking in response to the UK Parliamentary Ombudsman's further postponing of the publication of her report into Equitable Life, and the British government's continued refusal to respond to the European Parliament's resolution on the issue:
"It is both immoral and illegal for the government to leave so many Equitable Life policyholders without a remedy. I cannot accept the fact that the European Parliament faces the prospect of waiting more than a year between its report on the crisis at Equitable Life, and any formal response by the government most concerned by it.
The European Commission provided a clear and detailed response to us earlier this autumn, but so far there is not even an acknowledgment from the British government.
Such a stance is all the more surprising following the prompt rescuing of Northern Rock. I will make sure the Petitions Committee of the European Parliament, to whom several Equitable policyholders came for redress in the first place, takes this matter up once again."
See the European Commission’s response. Read coverage in Money Marketing 11th December 2007
09/11/2007 - The Pru deal approved
At an EGM in Westminster about three hundred WP annuitants attended a lengthy EGM which went smoothly under the professional chairing of Vanni Treves. Predictably, when the voting was announced 98% had approved the proposed sale. Ity remains for the FSA to publish its views and then a High Court hearing on 26th November to ratify.
19/10/2007 - EMAG’s 7th AGM
About 100 EMAG members attended the two hour AGM meeting, with nine of 10 EMAG directors present. Two key presentations were well appreciated:
1. A senior partner at Bindmans, John Halford, who acts for the OPs that succeeded in their JR and were rewarded with an appeal against by the DWP, gave a 20 minute talk. He was able to explain the heart of the matter and the ever-changing submissions of the DWP and WHY the case is significant to PO2's reception. Stephen Grosz, who is retained on EMAG's account as Bindman partner responsible, was also present. See a precis of John Halford’s presentation.
Colin Slater gave a presentation fleshing out his BH report into the Pru WPA takeover proposal and, along with EMAG's chairman John Newman, he answered very many subsequent questions. See Colin Slater’s summary slide presentation.
Judging by the members present warm praise afterwards, EMAG's efforts are very much appreciated.
24/09/2007 - The EU Parliament’s reaction?
The Treasury has confirmed that it has no current intention to respond to EQUI, despite the delay to the PO report until next year. This displays a breathtaking contempt for Brussels. EMAG has written, in the wake of Northern Rock, to urge MEPs in the EU Parliament to protest and pressure the UK to think again. The Conservatives in Europe are supportive:
See here and here.
03/09/2007 - The FSA’s annual meeting
For the sixth year in succession EMAG made a strong representation at the annual FSA beanfeast on 19th July and introduced, per usual, notes of disquiet. Both EMAG’s Paul Braithwaite and academic Chris Harlow raised awkward questions about EQUI, the FSA, the FOS and Lord Neill. These were backed up by written questions from EMAG’s Chris Carnaghan and paul weir. All questions and answers have now appeared on the FSA’s website. Read them here.
18/07/2007 - European Parliament EQUI debate and vote
EMAG’s Tom Lake and Paul Braithwaite were present for the realisation of the Petition that they had lodged with Brussels in December 2004. It was a triumph for EMAG. 605 MEPs from ALL the major parties voted to adopt the EQUI report and just 10(including UKIP’s MEPs) voted against. Read the reports main Conclusions and Recommendations.
The quality of the debate was impressive, with absolutely outstanding contributions from Rapporteur Diana Walli,s plus Sir Robert Atkins, Sharon Bowles and Neil Parrish in particular. Read the full transcript here.
Dowload a PDF file of the whole 385 page EQUI report.
18/07/2007 - Press coverage of EQUI
The official EU Parliament press release summarised the debate and vote. The British quality press gave extensive coverage to EQUI’s damning report. In particular, the Financial Times, The Guardian, The Telegraph and, as ever, Simon Bain in The Herald. Read the articles.
18/07/2007 - Kitty Ussher MP
In Chancellor Alistair Darling’s new Treasury line-up, the Economic Secretary to The Treasury, Kitty Ussher (MP for Burnley), takes responsibility for the PO report into Equitable (and the FSA). EMAG sought an early meeting with her, which was politely declined. Read Ms Ussher’s biography.
20/04/2007 - FOS receives EQUI dossier
EMAG prepared a 60 page dossier of extracts from the EQUI draft report and the evidence submitted about the FOS, and Paul Braithwaite presented a hard copy of it in person to the FOS’s chairman, Sir Christopher Kelly, on 18th April. The finished EQUI report is expected to be published on 9th May and to confirm recommendations of material changes to the FOS.
20/04/2007 - TV programme on EQUI
Earlier this year the European Parliamentary Channel commissioned the making of a seven minute TV News programme into the EQUI Inquiry. It contains interviews with chairwoman Mairead Mcguinness and Rapporteur, Diana Wallis, as well as explaining the losses incurred by a typical German investor. Well worth watching. Click here for more.
05/04/2007 - EMAG rebuttal of FOS
EMAG was outraged by the confusing, contradictory and self-serving evidence of the FOS to EQUI, whilst it refused to participate in the public evidence sessions. In particular, the written evidence from the FOS at items 89 and 90 could not pass by without a rebuttal. Click here to read more.
Read Chris Carnaghan’s response for EMAG on the EQUI website now, at item 91.
26/03/2007 - EQUI’s closed session 20th March
This closed meeting was to consider EQUI’s first draft of its report. The final public session in Brussels will be held on 11th April, which EMAG will attend. The Rapporteur, Diana Wallis MEP, did make some “on the record” encouraging comments afterwards. Click here to read more.
26/03/2007 - EMAG Postscript to EQUI
On 23rd March, EMAG sent an update to EQUI, covering the developments of the last two months. No new submission to EQUI will be considered after March 31st.
Download EMAG's sumbmission.
