PracticeAccounting FirmsPenrose offers little hope for policyholders

Penrose offers little hope for policyholders

The government has signalled in its response to the Penrose report that policyholders will not receive compensation from the Treasury.

Link: Penrose blames former Equitable management

Treasury financial secretary, Ruth Kelly’s, response to the report in which she blamed the life-assurer’s former management for its near collapse, means that more than 800,000 policyholders would have to go to the courts to seek compensation.

Last night, an independent financial adviser, speaking on Sky News, said the report had did little else, but ‘point the finger of blame’, and said any legal claims could be as far as 10 years away, given how long cases like BCCI had taken to reach trial.

Yesterday Kelly said that while the government sympathised with policy holders and would do ‘all in its power to stand by investors’ it could not ‘underwrite each and every company whose management and boards make fundamental mistakes and questionable decisions.

‘In dealing with this issue we have a responsibility to taxpayers now and in the future.’

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