UK - A compromise deal put forward by beleaguered insurer Equitable Life looks likely to go ahead - thanks to pension funds.
Chairman Vanni Treves told a final conference that pension fund managers had given their backing to the scheme. Pension schemes rallied to the Equitable cause following a letter of support by National Association of Pension Funds' chairman Peter Thompson.
The letter indicated that the NAPF approved the plan and noted that the alternative would appear to be years of further litigation, expense and uncertainty for those individuals and members of pension schemes who retain an investment within the with-profits fund.
Equitable has more than 6000 group personal pension and AVC schemes - representing over 500,000 members - who hold around £4bn, nearly 20% of the society's funds of £21bn.
The results of the vote on the compromise scheme will be revealed at the end of this month. To be successful, more than 50% of each class of policyholders by number and 75% by value must vote in favour of the scheme.
By Jonathan Stapleton
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