EQUITABLE Life policyholders have been told the terminal bonus and maturity values of their policies...
EQUITABLE Life policyholders have been told the terminal bonus and maturity values of their policies are worth even less than they were two months ago, and may be 25% lower than previous statements suggested.
A great piece of reporting in the Scotsman reveals that letters sent to around 38,000 members by Equitable's chief executive, Charles Thomson, indicate with-profits and unit -linked policies statements sent out in April were "incorrect".
Officials are believed to have said they are "very sorry", however, policyholders are now discovering their terminal bonuses could be at least 25% lower than previously thought.
This news surfaces at the same time as an independent report commissioned by unhappy Equitable members reveals there were in fact a £.3bn black hole in the accounts - at least £700m more than previously thought - when the company closed its books to new business in December 2000.
The Scotsman's statement from Equitable, in not so many words, states: "it was a computer error".
US FEDERAL Reserve Bank officials took action to kick-start the economy again yesterday when it cut interest rates by a quarter percent to its lowest level in 45 years at 1%.
As if the cut to 1% wasn't enough, the Daily Telegraph reports that some traders were disappointed the reduction hadn't been more.
But it could now mean that the Bank of England's Monetary Policy Committee may now also cut its rates on July 10th.
THE ACCIDENT GROUP, the no-win no-fee personal claims firm that collapsed last month, is also reported to owe more than £11m in unpaid tax and National Insurance, continues the Telegraph.
Having fired most of its 2,500 staff by text message, it then turns out the management had stopped paying the employees' income tax and NI contributions in January, even though they were still taking them out of the wage packets.
Revenue officials are aware that this is not a deliberate act by the employees, but it's difficult to know whether that money will ever be reclaimed as the group's founder, Mark Langford, has gone to ground.
Langford currently owns a £40m fortune from the initial success of the company, several luxury cars, a £2.5m yacht and a holiday home in the south of Spain.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch