Equitable drops £100m claim
Mutual agrees not to pursue surrender penalties claim
Equitable Life has dropped a £100m claim against Ernst & Young that it
only introduced last week.
In court yesterday, Iain Milligan QC announced that the mutual would no
longer be pursuing the claim, which relates to the costs of not having increased
surrender penalties in the late 1990s, when E&Y’s alleged negligence is
supposed to have distorted the society’s financial position.
‘In the light of the debate last Thursday about contractual surrenders, we
have received further advice from our experts, and [we] do not propose, in the
light of that advice, to pursue the application,’ Milligan said in court.
It is not clear why Equitable has dropped the claim, though it is thought the
complexity of calculating the claim’s value, as envisaged by Accountancy Age
last week, may have been significant.