The Government should apologise for its handling of Equitable Life and pay compensation, demands a House of Commons Select Committee including MPs from all the major political parties.
The Public Administration Select Committee gave its full backing to July's Parliamentary Ombudsman report into Equitable Life, which found ministers and the FSA had failed to properly regulate the insurance firm.
It backed Ombudsman Anne Abraham's report, which called for a compensation scheme to be set up for victims of the scandal.
The Committee also recommends the Government apologise for failures by the Department for Trade and Industry, the Government's Actuary Department and the FSA.
The Government was due to respond to the report last week, but Leader of the Commons Harriet Harman says a response will not be ready until Parliament returns from its Christmas break on 12 January.
However, the Liberal Democrats say Gordon Brown himself should be apologising to policyholders and ensuring they receive compensation.
Vince Cable, Shadow Chancellor for the Liberal Democrats, says the Government's delays are unacceptable, and called for immediate action to help policyholders.
"After months of dragging his feet Gordon Brown must now apologise to policyholders and take action to deal with financial compensation.
"The Government should apologise for the years of delay, anxiety and unanswered questions suffered by policyholders.
"Ministers have not only completely failed to regulate properly, but have proven themselves utterly incapable of establishing a proper investigation into this affair."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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