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.’

Related Articles

Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

2m Emma Smith, Managing Editor