Treves: Government must face Equitable cost

Equitable's chairman Vanni Treves says the government must face the cost of the insurer's collapse, as Ombudsman is expected to slam its departments over their role in the affair

Written by Kevin Reed

Accountancy Age, 17 Jul 2008

The government should not duck out of paying compensation to policyholders of failed insurer Equitable Life, its current chairman has stated.

The Parliamentary Ombudsman's report into the collapse of Equitable expected to point the finger at government departments in part for its failure and call for a government fund to be set out for compensation.

Current Equitable chair Vanni Treves warned that the government must pay out quickly and pooh-poohed concerns over whether it can afford it.

'I do not believe any argument that the Government has not got the money to do it. It is the job of the Government to fund it and pay out speedily,' Treves said in the Daily Telegraph.

Accounting tribunal the Joint Disciplinary Scheme is also expected to release its findings soon looking at why Ernst & Young auditors gave an ‘unqualified’ audit opinion on Equitable Life’s accounts from 1990 to 2000 when, the JDS case alleges, the accounts were not prepared in line with company law rules.

Read the Telegraph's story

Disciplinary costs see institute post £1.6m deficit