15 July 2008
The Prime Minister suggested yesterday that he would not allow
compensation to be paid out to victims of the Equitable Life
collapse if the Parliamentary Ombudsman's report criticises the
failure of regulators to protect customers.
At this monthly press conference, Gordon Brown was asked whether
he could envisage any circumstances where customers who lost out
heavily would be entitled to compensation.
Mr Brown replied: "This is a legal question. We have dealt with
issues that show culpability of Equitable Life as a company in this
matter. There have been issues raised about the Government and we
have got to look at the legal judgments that are made."
Mr Brown's comments suggest that a legal battle between the
Treasury and policyholders is likely to ensue as soon as the report
is released on Thursday.
