09 July 2008
A damning report by the parliamentary ombudsman, Ann Abraham
into the near-collapse of Equitable Life could pave the way for
billions of pounds in compensation to be paid out of the public
purse.
Ms Abraham will announce in a report due to be published next
week that watchdog bodies were guilty of maladministration ahead of
the demise of the world's oldest insurance company.
The Equitable Members Action Group is hoping that Ms Abraham
will recommend that the Government compensates policyholders.
Ros Altmann, a campaigner and former pensions adviser to the
Government, said if Ms Abraham calls for compensation, the
Government should respond immediately.
