29/11/2005 - The challenge to PO recommendations
There is no more important issue to the million plus investors who have suffered losses in the ELAS scandal than that of the Government new habit of ignoring PO recommendations. On 20 October the select committee on Public Administration addressed the Inland Revenue’s failure to honour the PO’s recommendations. See transcript here
On Thursday morning 1 December the same committee will see Ann Abraham again. This time, along with the Ministry of Defence, which in July 2005, lamentably rejected recommendations for compensating Britons interned by the Japanese. EMAG will attend.
31/10/2005 - EMAG obtains witness statements
When the Court reconvened on 19 September, that whole week was taken up with ELAS’s expert witness from auditors PcW, David Laws and that was followed summarily by ELAS unexpectedly dropping ALL claims against Ernst & Young. Subsequently, on 10 October Mike Arnold, actuary, was expert witness for the Society. EMAG requested copies of both witnesses statements. See EMAG’s letter to Langley J
EMAG is pleased to confirm that ELAS’s solicitors, Herbert Smith, HAS now provided both and when they have been scanned they will be made available on this website under the sub-menu Court Papers - which now has Nicolas Bellord’s impressions of the most recent Court day 20 October - day 62.
24/10/2005 - Select committee hears Ann Abraham
On 20 October, Ann Abraham reported to Parliament’s select committee on Public Administration and EMAG’s Paul Braithwaite was in attendance. Extensive criticism was voiced by MPs at the government having TWICE in the last few weeks defied the recommendations of PO reports. This is almost without precedent and does NOT bode well for the report PO 2 into ELAS, expected in January. Whilst MP’s criticism raged about the Treasury’s backing of the Inland Revenue in its refusal to honour the PO’s recommendations on over-distribution of tax credits, the Britons interned by the Japanese, another example of government defiance of the PO, was tabled to be discussed at a further meeting to be held in a few weeks. See EMAG’s submission expressing disquiet.
The committee’s excellent chairman, Labour MP Dr Tony Wright, raised the spectre of the need to consider compulsory implementation of PO recommendations, if the government persists in what Ann Abraham described as “picking and choosing” the recommendations it would honour.
Rupert Jones in The Guardian 21 Oct 2005
Alex Hawkes in Accountancy Age
19/09/2005 - Late news
The Guardian 17 September has now reported on the success at Brussels:
This week MEPs called for a special inquiry as victims took their case to Europe
And the UK LibDem MEP, Sharon Bowles, has lodged an oral question to the European Commission for the next plenary session on September 27.
19/09/2005 - ELAS: Whose side are they on?
After the hearing two interesting written submissions became public documents:
One was by Charles Thomson of Equitable, sent to the Petitions Committee on 16 August. Reading it, one wonders whose side the Society is on? To say that it doesn’t make a strong case for supporting policyholders in the European Parliament is putting it mildly.
Two key paras read:
“The Society has consulted Leading and Junior Counsel on potential claims which the Society or its policyholders might conceivably have against the Society's regulators, including claims alleging breach of enforceable private rights arising under the First, Second and Third Life Directives, to which the Insurance Companies Act 1982 (as amended from time to time) is intended to give effect. The Society has been advised that Counsel do not consider that the Directives give rise to any enforceable rights on the part of the Society in respect of the shortcomings identified in the Penrose Report, and as such there is no prospect of the Society succeeding in such a claim. A copy of the letter of advice from the Society's solicitors dated 14 April 2004, which records this advice, is attached. A copy was sent to all members of the Society in late April 2004.
In circumstances where the Society is currently awaiting the outcome of the Parliamentary Ombudsman's investigation into the prudential regulation of the Society, it is not in a position to comment on whether the UK Government has complied with the relevant Life Directives.”
This ignores the fact that the board’s solicitors did advise that the POLICYHOLDERS have a legal case against the Third Life Directive - but the Society, it was advised, did not. It is also important to be aware that the PO’s investigation has NOTHING to do with the Life Directives. The Society has always refused to divulge either the brief or the full legal advice received about Europe dating from March/April 2004.
Read Charles Thomson’s shocking submission
In the event it received no attention.
In advance of the hearing the PO also had submitted a Memorandum specifying the PO 2 brief.
19/09/2005 - TreasCom sets up a new talking shop
The Retail Financial Services Forum hwas announced on 15 September, to address the crisis in confidence. Operating a regulator that stands and delivers for policyholder protection does, as yet, appear to be under the radar.
Read here and here
13/09/2005 - EMAG's Petition hearing in Brussels
The Petitions Committee hearing went better than could possibly have been hoped anticipated. Twenty six MEPs attended and they showed an overwhelming level of support for EMAG’s proposal to set up a special Temporary Committee of Enquiry into Equitable Life. The Secretariat was instructed to prepare a proposed draft. Policyholders are indebted to Iain Ogilvie, the PO 2 Investigation Manager, for attending and articulating his study’s parochial remit.
Read a verbatim transcript of EMAG’s presentation.
Read also the transcript of Nicolas Bellord’s presentation, made on behalf of the deceased Arthur White.
Here are descriptions of the reception by Paul Braithwaite and Tom Lake.
EMAG’s press release after the hearing – which, sadly, received no coverage whatsoever!
Read the statement made afterwards by Irish Labour MEP Proinsias de Rossa
25/06/2005 - PO finds against Gordon Brown’s tax credit
On 22 June, the PO found AGAINST the operation of the admin of the tax credit system, saying that vast numbers of referrals to her demonstrate that it isn't working: Clawing back overpayments from the poorest is creating distress and hardship. The PO (and the Citizens' Advice Bureau) both recommend an amnesty.
Soon, the PO will report on the collapsed company pension schemes like ASW and Dexion, where the Treasury has left 60,000 pensions swinging in the wind. Dr Ros Altmann of LSE (and pensions adviser to No 10) has long championed these unfortunate people with a strong claim (measured in billions) and it is possible that the PO will also reach a finding in that case AGAINST Gordon's Treasury. If this is so we night expect a “whispering campaign” against the office of the PO in advance of the PO 2 report at the turn of the year.
See BBC: Tax credits backfire on families
27/05/2005 - Guernsey contracts covered
As already reported on this website, the UK authorities have confirmed that Guernsey policyholders will be covered by the Parliamentary Ombudsman's second investigation.
This is Guernsey 18 May 05
27/05/2005 - Rectification Schemes
Peter Butler of ELTA has prepared a sixth bulletin which identifies a possible new route to claiming mis-selling arising out of the delays.
Click here to read more.
18/05/2005 - EMAG incorporates
On June 3 “Equitable Members Action Group Limited” was registered as a new company, limited by guarantee. This process was authorised at the last AGM. EMAG’s committee met for the 43rd time on June 16 and, the same evening, the first board meeting of Equitable Members Action Group Limited also took place. The board is expected to comprise the members of EMAG’s committee.
18/05/2005 - Selling off the silver
On 14 June Christie’s auctioned off an early work by Thomas Gainborough, which was a 1782 portrait of the Equitable Life’s then president – Sir Charles Gould. The painting sold for £624,000.
22/03/2005 - PO compensation precedent
In 1989 in the case of Barlow Clowes, after exoneration by an internal enquiry by the DTI, was found by the then PO to have been maladministrative, causing loss. The loudest critic in calling for compensation was one Gordon Brown. In more than four years on the Equitable Life scandal Gordon Brown has been careful never to say one word about it. The PO 2 Investigation Inquiry team leader recently clarified what was the outcome of the PO's finding in BC, when Government then did not accept the finding off blame but nevertheless paid out very substantial compensation. Read More.
11/03/2005 - The crucial submission to PO 2
On 1 March EMAG made what was without doubt THE most substantial submission on behalf of policyholders, providing evidence, point by point against the official claims of maladministration as being investigated by the Parliamentary Ombudsman in this, its second study of ELAS.
EMAG's chairman, Tom Lake to the PO 2 Investigative team leader, Iain Ogilvie, 28 Feb 2005
Download EMAG's 1 March 2005 107-page submission to the PO 2 Investigation, substantiating policyholder claims of maladministration.
03/03/2005 - Two heartfelt plaudits
Nicolas Bellord:
EMAG's committee would like to extend particular thanks to retired trust solicitor, Nicolas Bellord, for working with us in preparing and submitting on time, the substantial EMAG submission to PO 2 (see Quote of the Day). Whilst the committee has paid an Honorarium to Nic, it is no measure of the hours, knowledge and commitment applied. A hearty "thank you".
Liz Dolan:
One of the most vociferous and valuable long-term journalist supporters of ELAS's policyholders fighting for justice has been the feisty Liz Dolan, Personal Finance Editor of the Sunday Telegraph. She never succumbed to the charm offensives and always spoke out bravely, often with biting wit. On 5 March she leaves the staff of the Sunday Telegraph.
However, there is good news. She WILL be running the Sunday Telegraph's "Dear Lorna" (soon to be "Dear Liz") column that takes on the investigation of individual's financial complaints. She will be VERY effective in championing individual's quest for redress against the over-stuffed, high-handed and plain deaf financial corporations and regulators. A BIG public thank you to Liz Dolan from ELAS policyholders.
04/02/2005 - The Tories and ELAS
Andrew Tyrie circulated a letter briefing all Tory MPs on 24 January. Read it here.
The Tory shadow chancellor, Oliver Letwin was interviewed on Radio 4's "P M" programme on February 2 about the UK's success in getting the electorate to own their own pensions. This is, verbatim, what he said:
"The British experience was, on the whole, a massive success. You do, of course, have to make sure that the supervision of the (pension) providers is well founded.....which we were NOT good at doing here in the UK. Unfortunately, Equitable Life has shown that."
01/01/2005 - International ELAS policyholder numbers
EMAG has been asked by MEP Chris Huhne, how many non-UK European policyholders have been affected by the Equitable scandal. The answer is between 10,000 and 15,000, according to Alistair Dunbar of the Society. We are grateful that he has provided EMAG with details culled from the regulatory returns for years 1999 and 2000 and they show of the order of 8,300 with-profits policyholders in Eire, 4,000 in Germany and circa 6,800 purchased through the Guernsey letter-box sales office that was actually operated in Milton Keynes. The disparity is explained by multiple policies held by some individuals.
MEPs in the European Parliament could and should be concerned that more than 10,000 non-UK European purchasers have been left high and dry by the total indifference of the UK regulators and British government.
01/01/2005 - Clarke-Willmott's claim on behalf of 400+ WPAs
Richard Dyson in the Mail (Sunday 2 Jan 2005):
"Double court battle could force Equitable somersault.
The troubled insurer's lawyers face the awkward prospect of having to argue two potentially opposing cases before the same judge. Equitable could be forced to deny arguments made by policyholders, which will largely be the same as the arguments it poses against the auditors in the other case."
Paul Braithwaite of Equitable Members' Action Group, said: 'Equitable is claiming billions against the auditor for allowing the fund to get into such a state, while denying to its impoverished with-profits annuitants that it took place. If annuitants come before the same judge, he may not be amused at such hypocrisy from the company.'
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