European Parliament to Investigate UK Financial Services

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European Parliament to Investigate UK Financial Services

Postby antiaristo » Wed Jan 18, 2006 6:40 pm

Some rare good news<br><br><!--EZCODE QUOTE START--><blockquote><strong><em>Quote:</em></strong><hr>MEPs to investigate Equitable Life failings <br><br>Staff and agencies<br>Wednesday January 18, 2006 <br><br><br>The European Parliament today announced it was launching an investigation into the UK government's role in what went wrong at troubled mutual Equitable Life. The inquiry will focus on whether the government failed to protect policyholders in its role as regulator.<br><br>The European Parliament said it would be setting up a committee, made up of 22 MEPs to be selected at a vote tomorrow, to investigate the issue.<br><br>The move is good news for beleaguered policyholders who have seen their hopes for compensation ebb away. Last year the society abandoned a £4.3bn legal action against 15 of the society's former directors and its former auditors Ernst & Young, even agreeing to pay costs for some parties.<br><br>A previous report carried out by Lord Penrose also failed to open the door for government compensation after it concluded that, while the regulatory system had failed policyholders, the society was the "author of its own misfortunes".<br><br>More than 1 million UK policyholders and 15,000 policyholders in other EU countries are thought to have lost a total of around £4bn from their pensions, savings or investments following alleged mismanagement at Equitable.<br><br>The European Parliament said it would investigate "allegations that UK regulators consistently failed to protect policyholders by rigorous supervision of accounting and provisioning practices and of the financial situation of Equitable Life".<br><br>It will also consider whether the relevant EU law was properly applied in the UK and whether the European Commission properly monitored the situation.<br><br>The committee will have 12 months in which to complete its work and submit a report to the European Parliament, but it will produce an interim report within four months.<br><br>The European Parliament can set up a committee of inquiry to investigate contraventions of European Community law. It can hold meetings and invite EC institutions or national governments to send representatives, meaning officials from the Treasury and <!--EZCODE BOLD START--><strong>Department of Trade and Industry</strong><!--EZCODE BOLD END--> could be called to give evidence.<br><br>The decision follows a petition from the Equitable Members' Action Group (Emag), lodged in December 2004, which called on the European Commission to institute legal proceedings against the government for failing to protect citizens throughout Europe.<br><br>The group's general secretary, Paul <!--EZCODE BOLD START--><strong>Braithwaite,</strong><!--EZCODE BOLD END--> said: "Emag is absolutely delighted that the European Parliament is going to fully investigate the behaviour of the British Parliament and Treasury.<br><br>"We look forward to hearing the composition of the committee of MEPs. It is a red letter day for policyholders."<br><br>One of the MEPs who backed the campaign, Sir Robert Atkins, Conservative deputy leader in the European Parliament, said: "We were presented with a substantial petition on behalf of thousands of aggrieved policy holders who have a right to present their case in full to parliament, and we have now given them their chance to do so."<br><br>Equitable was plunged into problems after it lost a legal showdown in the House of Lords over the rights of policyholders who had bought guaranteed annuities. The ruling left it with a £1.5bn liability.<hr></blockquote><!--EZCODE QUOTE END--><br><br><!--EZCODE AUTOLINK START--><a href="http://money.guardian.co.uk/news_/story/0,,1689377,00.html">money.guardian.co.uk/news...77,00.html</a><!--EZCODE AUTOLINK END--><br><br>Equitable life policyholders were supposed to be protected by the Department of Trade and Industry at the time Lord Clive Hollick was Blair's Special Advisor within that Ministry.<br><br>They got screwed, like many others.<br>There are three letters to Paul Braithwaite in the Data Dump in the string titled "Second Batch 2002-2004".<br><br>They're worth reading.<br>There are strong overtones of BCCI there.<br><br> <p></p><i>Edited by: <A HREF=http://p216.ezboard.com/brigorousintuition.showUserPublicProfile?gid=antiaristo>antiaristo</A> at: 1/18/06 3:43 pm<br></i>
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