Payout order for victims of Equitable Life - Business - Evening Standard
       

Payout order for victims of Equitable Life

The Government will be told to pay compensation to up to one million people who lost money through the near-collapse of Equitable Life in 2001 when the Parliamentary Ombudsman publishes her report tomorrow.

It is expected that Ombudsman Ann Abraham's report will say that policyholders and investors, many of whom lost up to half their savings, should be given compensation within two years.

Her report will criticise the roles of the Department of Trade and Industry, the Financial Services Authority and the Treasury for their handling of the crisis.

Abraham is believed to be demanding a public apology from the regulators to policyholders.

Equitable Life was valued at £26 billion when it almost went under and was forced to close for new business.

The scale of the compensation due is unclear but is estimated by some at £4 billion, which could well have an effect on public finances.

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