2-07-03

Barrett calls for Commons debate following Equitable Report

John Barrett, Liberal Democrat MP for Edinburgh West, today called for an early Commons debate to discuss the recent Parliamentary Ombudsman's report into Equitable Life.

Writing to his many constituents who had suffered from the financial mismanagement of Equitable Life in the 1980s and 1990s, Mr Barrett said he found the Ombudsman report to be “deeply disappointing”, noting that it left little recourse for individuals following what was a serious failure of the Government regulator, the Financial Services Authority.

Mr Barrett has now written to the Speaker of the House of Commons to ask for an urgent parliamentary debate so that MPs can discuss the issue before the impending summer recess.

In a statement, John Barrett said:

"After waiting many months for the publication of the Ombudsman's report, my constituents and I are deeply disappointed with the outcome.  Despite the fact the Government, in its role as a regulator in these matters, was inattentive to the point of negligence whilst Equitable Life mismanaged its affairs, the Ombudsman does not feel it has any jurisdiction to carry out further investigations.

"The Penrose Inquiry into the whole history of Equitable Life is of course still to report later in the year and leaves open the door, if only just, for compensation to be paid.  However, the Ombudsman's report appears to make this outcome less likely, leaving many innocent policyholders, who invested with the Equitable in good faith, facing the prospect of losing massive sums in their retirement."

ENDS