Introduction
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1.1 This document provides a guide to the full report of my investigation into the prudential regulation of The Equitable Life Assurance Society (the Society) during the period prior to 1 December 2001. It also summarises the findings and recommendations of that report.
1.2 The guide sets out in summary form the conclusions which I have reached in that report. However, it does not aim to explain the full rationale for those conclusions or to set out every consideration that has been taken into account in reaching those conclusions.
1.3 This guide is not a substitute for reading Part 1 of my report, to which the reader is referred if they wish to understand the reasons for my findings and determinations or to see on what evidence I have based those findings and determinations. A glossary of terms used within my report is also set out in Part 1.
1.4 The investigation which led to my report centred on allegations of regulatory failure on the part of the public bodies responsible for the prudential regulation of insurance companies in the period prior to 1 December 2001, as those responsibilities were discharged in the case of the Society.
1.5 The full report of my investigation is in four Parts (or volumes):
Part 1 describes the background to my investigation, summarises the evidence and representations submitted to me by the parties to the complaints, explains the tests I have applied in determining those complaints, sets out my key findings of fact and contains my determinations as to whether maladministration occurred and, if so, whether it has resulted in any unremedied injustice. It concludes by setting out my recommendations concerning questions of remedy.
Part 2 contains a factual description of the historical development of the regime that was relevant to the prudential regulation of life insurance companies during the period prior to 1 December 2001.
Part 3 contains a detailed chronology of events relating to the prudential regulation of the Society during the relevant period.
Part 4 contains some key primary and secondary documents, reproduced in full or in part, which I consider are either key to a full understanding of the matters that I have investigated or which help to place my determination of the relevant complaints in a wider context.
1.6 This document focuses on providing a summary of my findings. It therefore provides the reader principally with a guide to Part 1 of my full report. However, some Chapters of Part 1 are themselves a summary of more detailed evidence and documentation contained in Parts 2, 3 and 4.
1.7 So this document does not tell the full story and is not intended to do so. It is deliberately brief and focuses primarily on the complaints that I received and my determination of them.
1.8 I would encourage anyone who wishes to know more about the events which form the background to, and context for, this investigation, or about the detailed regime relevant to the prudential regulation of life insurance companies during the period in question, or who wishes to read a detailed account of the way in which the prudential regulation of the Society was undertaken, to read Part 1 in full.
The structure of Part 1
1.9 The structure of Part 1 of my report is as follows.
Chapter 1 is an introductory Chapter.
Chapter 2 sets the scene for the investigation I have conducted, focusing on the events which form the background to, and the context for, my investigation, and also on the other reviews, inquiries and litigation which have taken place (or which continue to take place) in respect of the Society.
Chapter 3 explains the involvement of my Office in respect of the events related to the Society and which led to my decision to conduct this investigation. It also outlines the legal and administrative framework for the investigation and describes the process that I have used to conduct it.
Chapter 4 sets out the general and detailed complaints that have been made to me about the prudential regulation of the Society. It also sets out the initial response to those complaints of the public bodies whose actions were the subject of complaint.
Chapter 5 sets out the basis for my determination of the complaints. It describes my general approach to investigating complaints of injustice sustained as a consequence of maladministration; and sets out both the general principles of good administration and public law and the specific legal and administrative framework of prudential regulation applicable to my consideration of those complaints. It concludes with a summary of the key obligations of the prudential regulators and/or the Government Actuary’s Department (GAD) which are relevant to this investigation.
Chapters 6, 7 and 8 set out a summary of the way in which the prudential regulation of the Society was undertaken in three time periods:
- the first period being prior to 20 June 1998;
- the second period being from 20 June 1998 to 8 December 2000, when the Society closed to new business;
- the third period being the post-closure period from 8 December 2000 to 1 December 2001, when my jurisdiction ends.
Chapter 9 contains the preliminary assessments which I have made in respect of disputed questions concerning what standard of regulation it would be appropriate to apply when reviewing the acts and omissions of those undertaking the prudential regulation of the Society, and what powers were available to those regulators.
Chapter 10 sets out the results of my review of the evidence I have obtained and contains my findings of fact.
Chapter 11 sets out my determinations as to whether the acts and omissions of the prudential regulators and/or GAD constitute maladministration.
Chapter 12 sets out my determinations as to whether any such maladministration has led to injustice to those who have complained to me.
Chapter 13 contains my disposal of each complaint within the terms of reference for the investigation, setting out which I have upheld in full, which I have upheld in part, and which I have dismissed.
Chapter 14 considers questions of remedy and contains my recommendations.
Chapter 15 contains my concluding remarks.
