Background
Jump to
2. The report of my investigation into the prudential regulation of Equitable Life was laid before Parliament on 30 June 2003. That report covered the discharge by Her Majesty's Treasury and by the Financial Services Authority (FSA) - on behalf of Her Majesty's Treasury - of the prudential regulation of the Society during the period from 1 January 1999 to 8 December 2000. That investigation was of a representative complaint- one of the approximately 340 complaints then referred by Members of Parliament to me or my predecessor. By 1 July 2004, my Office had received 599 referred complaints about Equitable Life. After I had reported in June 2003, I stated that I would give further consideration to the position following publication of the report of the Penrose inquiry and the response of the Government to that report and would give a decision, with supporting reasons, as to whether I would carry out any further investigation.
3. On 8 March 2004 the Treasury published the report of the inquiry it had commissioned on 31 August 2001, conducted by the Lord Penrose, the terms of reference for which were:To enquire into the circumstances leading to the current situation of the Equitable Life Assurance Society, taking account of relevant life market background; to identify any lessons to be learnt for the conduct, administration, and regulation of life assurance business; and to give a report there on to Treasury Ministers.
4. I wrote to all Members of Parliament on 16 March 2004 to advise them that, in order to inform my decision on whether I should conduct any further investigation into the prudential regulation of Equitable Life in the light of the Penrose report, I would consult interested parties. That consultation, on whether my Office should carry out a further investigation and, if so,over what period and with regard to which matters, was launched on 22 April 2004.
