Equitable Life Assurance Society Update- April 2010

20th April 2010

The Ex-gratia Payment Scheme

The Rt Hon Sir John Chadwick has been asked by the Government to provide advice on the extent of relative losses suffered by Equitable Life policyholders and the proportion of these losses which can be apportioned to (a) the maladministration accepted by the Government and (b) the actions of Equitable Life and its advisers. He was also asked to advise on which classes of policyholder have suffered the greatest impact as a result of the maladministration and factors which the Government might take into account when reaching a final view on determining whether disproportionate impact has been suffered.

Sir John has produced three interim reports covering various aspects of his advice. The Commission has written to Sir John seeking confirmation that Guernsey Branch policyholders will be treated in exactly the same manner as both UK resident policyholders and policyholders resident in other jurisdictions including EU member States, for the purpose of assessing relative loss and calculating the level of ex-gratia payments that would be payable. 

The three interim reports can be accessed via the website of Sir John’s Office at Sir John’s final advice is expected to be submitted in May 2010.