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Equitable Life

Volume 506: debated on Thursday 4 March 2010

I can today provide an update to the House on Sir John Chadwick’s work in advising the Government on the establishment of an ex gratia payment scheme for Equitable Life policyholders.

Sir John published his second interim report on 16 December 2009. He has since received a range of representations on the questions raised, and is today publishing his third and final interim report, which sets out:

Sir John’s provisional view on which life companies are suitable as a basis for a comparator in the assessment of relative loss resulting from accepted maladministration.

His provisional views as to what factors the Government may wish to take into account when considering those policyholders who have experienced disproportionate impact from the accepted maladministration; and

A comprehensive annex detailing initial quantitative advice from Sir John’s actuarial advisers, Towers Watson.

Sir John would welcome final representations and comments from all parties on the issues raised in his latest report by 9 April 2010.

The Government are committed to establishing a fair payment scheme as quickly as possible. Sir John expects to submit his final report in May 2010, and the Government have undertaken to provide a response, setting out details of a payment scheme, within 14 days of its publication.