Equitable intends to sue government
Troubled mutual Equitable Life intends to sue the government for regulatory failure if an official inquiry finds it was negligent in protecting policyholders' interest.
An inquiry by Scottish judge Lord George William Penrose is investigating policyholders’ allegations that regulators allowed Equitable to sell more than 100,000 pensions from 1998 to 2000, even though they knew its reserves were dangerously thin.
Vanni Treves, chairman of Equitable, told Channel 4 News that if the probe finds negligence by the Treasury, the Financial Services Authority or the Department of Trade and Industry, he intends to sue.
‘We will take legal action against whoever was responsible, against any arm of government Lord Penrose finds has legal culpability. The board will not shrink from pursuing that claim in members’ interest,’ Treves said.
Lord Penrose is expected to report his findings in summer 2003 at the earliest.