Equitable hopes get new boost

COMPENSATION hopes for Equitable Life policyholders received a further boost as the Government agreed to enable Parliamentary Ombudsman Ann Abraham to conduct a full investigation into the affair.

The move is an abrupt reversal for the Government which has made strenuous efforts to dissuade Abraham from launching an investigation that might open the door to redress.

The Government has agreed to extend the Ombudsman's jurisdiction to cover the Government Actuary's Department (GAD).

Abraham announced on Monday that she will carry out a statutory investigation into the actions of the Government departments responsible for regulating the society before December 2, 2001.

She said she was asking for GAD to be brought into her jurisdiction so she could assess its role in the regulation of Equitable.

She said: 'I consider that there is sufficient initial evidence to suggest that the actions of GAD are key to an assessment of whether maladministration by the prudential regulators caused an injustice to complainants that has not been put right.'

Yesterday, Shadow Financial Secretary Andrew Tyrie said: 'Even on the basis of the Government's track record of trying to avoid compensation, I cannot believe they would not honour sensible proposals for redress from the Ombudsman.'