Professional Documents
Culture Documents
HC 815-V
Equitable Life:
a decade of regulatory failure
Contents
Section 1:
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 2:
The background
Insurance regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
My jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 3:
The complaints that were made and the Governments initial response . . . . . . . . . . . . . . . . . . . . . . . 15
Section 4:
Section 5:
Findings of fact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Section 6:
Determinations of maladministration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Section 7:
Determinations of injustice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 8:
Section 9:
Part five: guide to the main report and summary of findings and recommendations
Section 1: Introduction
1.1
1.2
1.3
1.4
1.5
1.7
1.8
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Part five: guide to the main report and summary of findings and recommendations
2.1
2.7
2.2
2.8
2.9
2.10
2.11
2.4
2.5
2.6
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2.12
2.17
2.18
Insurance regulation
2.13
2.14
My jurisdiction
2.19
2.15
10
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12
3.2
3.3
3.4
3.5
3.6
3.9
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Terms of reference
3.10
14
3.13
3.14
3.12
My approach
4.1
4.2
4.3
4.4
4.6
4.7
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4.8
4.9
4.10
4.11
4.13
16
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18
5.1
5.2
5.3
5.4
5.8
5.9
5.10
5.6
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5.13
5.14
5.15
20
5.16
5.17
5.18
5.19
5.21
5.31
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5.32
5.33
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5.41
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these issues.
5.54 After having considered the representations I had
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5.73
5.75
5.72
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28
6.1
6.2
6.3
6.4
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30
7.1
7.2
7.3
7.4
7.5
7.7
7.8
7.9
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7.10
7.11
7.16
7.12
7.17
7.13
7.18
7.14
7.19
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7.25
7.22
7.23
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7.34 No
7.30
7.31
7.35
7.36 The
7.37
7.32
7.33
34
7.38 The
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36
8.1
8.2
8.3
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38
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
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9.11
9.15
9.16
9.17
9.12
9.13
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9.14
9.18
9.19
First recommendation
9.26 My first recommendation is that, in recognition of
Second recommendation
9.27 My second and central recommendation is
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9.32
9.33
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Specific complaints
1
Organisational issues
a.
b.
December 2004
Investigation terms of reference
The terms of reference for the investigation are:
To determine whether individuals were caused an
injustice through maladministration in the period
prior to December 2001 on the part of the public
bodies responsible for the prudential regulation of
the Equitable Life Assurance Society and/or the
Government Actuarys Department; and to
recommend appropriate redress for any injustice
so caused.
Statement of complaint
Summary of complaint
The complainants complain that the public bodies
responsible for the prudential regulation of insurance
companies (successively the Department of Trade and
Industry, Her Majestys Treasury and the Financial
Services Authority, collectively referred to in the rest
of this statement as the regulators) and the
Government Actuarys Department (GAD) failed for
considerably longer than a decade properly to exercise
their regulatory functions in respect of the Equitable
Life Assurance Society (ELAS) and were therefore guilty
of maladministration.
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d.
e.
h.
i.
f.
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j.
k.
m.
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o.
p.
q.
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r.
Remedy sought
The complainants seek full financial redress for the
losses they have incurred in consequence of the
maladministration outlined above.
Head of Complaint
Disposal
Dismissed
Dismissed
Dismissed
Dual role
Not determined
Dismissed
Conflict of interests
Dismissed
Upheld in full
Dismissed
Upheld in part
Upheld in part
Upheld in part
Upheld in part
Dismissed
N and O
PRE
Upheld in part
Upheld in part
Q and R
Upheld in part
GENERAL
COMPLAINT
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Please note
The telephone numbers of the
Parliamentary and Health Service
Ombudsman changed on 15 March 2009.
The new contact details are:
Helpline: 0345 015 4033
Fax: 0300 061 4000
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