Equitable Life has apparently u-turned on its decision to sue the Government over the number of regulatory slip-ups, highlighted in the Penrose Report. The decision not to sue has apparently come about because the industry regulator, the Financial Services Authority has decided not to take further action against Equitable's ex-managing director, believing it would make no difference to consumers and policyholders.
Equitable has confirmed that it still intends to continue with the existing action against their former auditors and other non-executive directors. The board of Equitable Life has recommended that policyholders join their view against suing the Government, despite the Equitable Members Action Group having different views.
Our View
Whitewash again comes to mind. There is always someone to blame but when brought into the public eye, out comes the paintbrush. Everyone that contributed to the downfall of Equitable should be accountable, even if it means jobs to go. The FSA should not have decided against action against the ex-managing director if he was guilty of rule breaches, regardless of whose best interests it was in. They are there to do a job and enforce the rules. This does not give a positive message to others thinking of doing the same.