Equitable Life has called on the Government to honour the Ombudsman's recommendation to make fair payments to policyholders.
The Board of Equitable Life today wrote to financial secretary to the Treasury Mark Hoban calling on him to honour the coalition commitment to implement the Ombudsman's recommendation to make fair and transparent payments to Equitable Life policyholders.
The minister is currently considering his response to the Chadwick review, what compensation recommendation the Government will follow and how much of a public purse constraint will be applied. He has asked for representations to be sent to him by 6 September.
The letter also asks the minister to reject Chadwick's recommendation for compensation valued between £400m - £500m and accept an amount ranging between £4bn - £4.8bn.
"Let us not make Equitable policyholders victims three times over," says Equitable Life chief executive Chris Wiscarson.
"First, at the hands of the regulators as so clearly articulated by the Parliamentary Ombudsman; second, at the hands of the Labour Government who failed to bring closure over a decade; and now third, compensation that will be decimated if Sir John Chadwick's advice, meant for the Labour Government and slated by the Ombudsman, is used."
The Government's decision in regard to the amount of compensation is due to be announced in the spending review on 20 October.
£300bn of liabilities
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Transfer from occupational scheme
Appointed by FCA and PSR boards