Brussels, 09/05/2007 (Agence Europe) - On Tuesday 8 May, the inquiry committee of the European Parliament on the crisis surrounding British insurance company Equitable Life adopted the report by UK Liberal MEP Diana Wallis (see EUROPE 9407). The committee took up the draft report calling on the United Kingdom to compensate the victims of Equitable Life and pleaded for European legislation to be improved in the field of financial services, in order to restore consumer confidence. The MEPs are also urging the British authorities to follow the recommendations of the UK Parliamentary ombudsman, which are anticipated for the near future. The EP will vote on the report of the inquiry committee as it stands at its plenary session of June, as it is not possible to table any amendments between now and then.
Speaking before the press, Diana Wallis described the “long journey” which led to the adoption of the report by the inquiry committee, since its creation in January 2006. She said that the “EP had been able to respond directly to the concerns of the citizens who were the victims of Equitable Life”. She went on to say that the report provided a “very clear analysis” in its call for the setting in place of “effective cross-border redress procedures” for European citizens, either before the courts or as part of other procedures. “No mobility or access to the internal market for business without concurrent rules on liability!” she said. The report also shed light on shortfalls by the UK authorities in the implementation of the third directive on life insurance. There is also, according to Ms Wallace, room for improvement in stimulating cooperation between the national regulators, which may take the form of an “early warning system”. Mairead McGuinness (EPP-ED, Ireland) voiced hopes that the report of the inquiry committee would give the victims “more powers” to obtain compensation. “The British and Irish authorities have not helped the people”, she lamented. British Conservative member Sir Robert Atkins called on the British government to “make a financial effort” to help to resolve the problem. He laid emphasis on the unsatisfactory collaboration of the British authorities throughout the duration of the inquiry. Heide Rühle (Greens, Germany) spoke out in favour of the “recommendation to introduce European rules allowing customers of financial services to join together in bringing an action before the courts”.
More than a million European citizens had invested in Equitable Life. The vast majority of them are British, with 15,000 of German or Irish nationality. In 2000, the British insurance company went bust, and was unable to pay out £1.5 billion to its policyholders. (mb)