UK - Equitable Life policyholders could miss out on compensation due to the "muddled" investigation into the beleaguered insurer's troubles, MPs fear.
Their concern follows the publication of letters submitted to the Treasury select committee from the bodies investigating the mutual’s collapse.
Conservative spokesman Stephen O’Brien claims any Equitable Life members would despair after reading them.
He said: “While each letter on its own is perfectly proper, the combined picture is of a complex morass, with no single body having the authority to do what policyholders and annuitants need, which is to investigate whether there has been regulatory failure and to order redress if appro-priate.”
Equitable’s collapse is being examined by the Penrose parliamentary ombudsman, the financial ombudsman and the complaints commissioner of the FSA.
Conservatives are trying to convince the parliamentary ombudsman to agree to extend her investigation to cover the period before 1999.
O’Brien added: “What the Treasury doesn’t seem to realise is the damaging effect that this has on the whole insurance and pensions sector by letting these investigations limp on.”
The Tories’ attack follows remarks from Liberal Democrat Treasury spokesman Norman Lamb, who said Equitable’s policyholders had little hope of compensation while there is the “dog’s dinner” of four separate inquiries going on.
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