Following substantial pressure from Island MP Andrew Turner, the Parliamentary Ombudsman has decided to investigate the role that the Government and regulator have played in events concerning the troubled insurance company Equitable Life
Mr Turner commented,
“Many constituents from the Island have written to me on this issue, which led me to raise it on their behalf both with the Prime Minister and the Parliamentary Ombudsman. I am delighted that concerted pressure from myself and fellow parliamentarians has meant that this whole issue is finally going to be put under the microscope.”
The Parliamentary Ombudsman (whose job it is to look into maladministration by national government bodies) announced that the period from 1 January 1999 until December 2000, when the Financial Services Authority took over responsibility for regulating Equitable Life, will now come under scrutiny.
The Ombudsman has the power to recommend payment of compensation, if it feels that the Government’s handling of the situation directly contributed to policyholders losing money.
Mr Turner commented,
“Whilst the Ombudsman’s inquiry is unlikely to appear before September 2002, it must be seen as a step in the right direction, and a welcome development to long suffering policyholders. I will certainly be monitoring the situation very closely in the coming months”
