E&Y pays out almost £3m following Equitable verdict

Ernst & Young has been ordered to pay a £500,000 fine and £2.4m in costs
after a court upheld limited findings following their audit of troubled
insurance company Equitable Life

E&Y appealed a damaging report by the former accountancy regulator the
Joint Disciplinary Scheme, which criticised the firm’s audit of the insurer.

E&Y successfully contested a claim they were not objective in their audit
of the firm.

However the JDS finding that the 1999 Financial Statements from Equitable did
not show a true and fair view, still stand.

Ernst & Young said it welcomed today’s judgment in overturning all
findings relating to objectivity and independence

The firm extended “our sympathies” to policyholders of Equitable Life, who
have been impacted by the near-collapse of the company.

More to follow…

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