In a Parliamentary debate on 23rd March, Ellesmere Port & Neston MP, Justin Madders warned that thousands of policyholders had still not been adequately compensated for the regulatory failings that led to the Equitable Life scandal.
“These people worked all their lives only to find that their pension pot has failed to materialise in the manner they were promised and they genuinely believed would occur” he said.
The Equitable Life company collapsed after it emerged that policy holders were promised bonuses that were unachievable. Subsequent reports by the Parliamentary Ombudsman found serious failings by Government regulators and recommended that a compensation scheme be set up. While such a scheme was subsequently established, MPs heard during the debate that 895,000 people who were caught up in the scandal have received only 22% of their losses.
As well providing justice for those who have lost out, Justin argued that fully compensating the victims is essential to secure the confidence of future generations in saving and investing for their future.
Commenting, Justin Madders MP said:
“While I welcome the steps that have been taken so far to compensate those who lost out in the Equitable Life scandal, it is wrong that hundreds of thousands of people have not been properly compensated.
“Given that many of those effected are now very advanced in age, I was pleased to join MPs from all parties in calling on the Government act quickly to provide justice.”