Brussels, 22/07/2008 (Agence Europe) - On Thursday 17 July, UK Parliament Ombudsman Ann Abraham delivered an oft-delayed report on the bankruptcy of British insurance company Equitable Life (see EUROPE 9407 and 9449) which points out the failure of the British government in this matter and recommends setting up a compensation scheme for victims. Several MEPs have repeated their calls for the British government to respond to the findings of the specific report adopted by the European Parliament in June 2007 and to compensate all the victims. Abraham has been invited to present her report to the EP petitions committee at the start of October.
“I congratulate Ms Abraham on her detailed work, and for including all EU policy holders of Equitable Life in her findings. Ms Abraham's findings of serial maladministration and injustice should trigger more than an apology. … Her conclusions, similar to the ones drawn in my report adopted by the European Parliament last year, make the case for a comprehensive, transparent and simple compensation scheme irresistible,” said British Liberal MEP Diana Wallis in a press release. Mairead McGuinness (EPP-ED, Ireland), who chaired the EP's temporary committee of enquiry on the bankruptcy of Equitable Life, said, too, that Abraham's report “effectively leaves the British government with no option but to compensate victims”. She added, “Prudential supervisory and regulatory standards throughout the EU must be strengthened and cooperation between national regulatory authorities must also be improved”. One of the most important points of the Solvency II draft directive reforms precisely the rules governing supervision of European insurers, introducing collegial oversight of cross-border groups (see EUROPE 9705). British Conservative MEP Sir Robert Atkins said it now behoved the British government to respond properly to the UK Ombudsman, to pay heed to the EP conclusions and to play fair with policy holders.
The bankruptcy of the Equitable Life insurance company, which saw a financial black hole of £1.5 billion, caused more than a million victims, mainly British, but also including 15,000 Germans and Irish. After investigating the European side of the bankruptcy, the EP called on the United Kingdom to assume its responsibilities and compensate victims. It also criticised the European Commission which failed in its role as guardian of the Treaties, and called on European lawmakers to put in place affective protection for consumers. (M.B./transl.rt)