Equitable Life has just published their independent report and has announced that they are to look at a new compromise scheme for former policyholders. This is in respect of the Guaranteed Annuity Rate debacle.
Equitable Life's Chief Executive announced that they intend to "resolve this outstanding Guaranteed Annuity Rate issue in a fair, reasonable and timely manner, both for continuing policyholders and for those who left the Society and might be due compensation".
Charles Thomson, Chief Executive also said "we have always recognised that there are certain groups of former policyholders who may have suffered financial loss as a result of the Guaranteed Annuity Rate issue, if they were mis-sold policies". Equitable Life also commissioned legal opinion which identified that policyholders may have a claim against the Society for damages if they can show that policies were mis-sold.
According to Equitable, there could be around 70,000 policyholders in this situation and damages could amount to between £40 and £75 million.
Equitable Life is currently in talks with the industry regulator, the Financial Services Authority and further announcements are expected shortly.
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