Key findings from the Penrose Report: Policyholders were 'blindfolded' for 12 years

The Penrose report published this afternoon reveals the executive managment of Equitable Life decided as early as in 1983 to cover the costs of the GAR with the final bonus paid out at the maturity of a policy - a move that has become known as the differential terminal bonus policy. That said, this decision was not actually reported to the Board of Directors until 1993, and policyholders were not informed in ANY WAY about the circumstances until 1995. Apart from this key judgment, Lord Penrose believes following points may be regarded as the essential conclusions arising from the rep...