DIANA WALLIS MEP: REGULATORS' PING-PONG OF EQUITABLE LIFE VICTIMS "UNACCEPTABLE"

6.00.00pm BST (GMT +0100) Tue 4th Jul 2006

The European Parliament this week adopted an interim report by the Temporary Committee of Inquiry into the collapse of Equitable Life.

Speaking in the debate in the European Parliament, the Rapporteur, Liberal Democrat MEP, Diana Wallis, said:

"The starting point for this report has been a disastrous personal event for thousands of EU citizens: the loss of their pension investments. The challenge now for the European Parliament is to exercise our supervisory powers over EU legislation. We have perhaps a once-in-a-generation chance to look in detail at the implementation process of EU law, taking one particular directive as an example".

She continued:

"One of the main themes of the debate was the way the various national regulators have played ping pong with the victims. In this inquiry we have heard from victims, sent from pillar to post. Their stories have been heartrending. They have made me angry - angry that they have been let down by their experience of our internal market for financial services. For them it has not produced extra choice, but rather the loss of life savings with no redress mechanisms available."

She revealed that in an information note provided by the European Commission to the Committee of Inquiry, the Commission said:

"The directive can only work smoothly if there is good cooperation between home and host state authorities. It is not a satisfactory situation, where aggrieved policyholders are referred by the host state authority to the home state authority and are then sent back by the home to the host authority, thus to find themselves unable to have their case examined by either. The Commission plans to seek further discussions with Member States."

Diana Wallis responded:

"I should jolly well hope so! If this inquiry does nothing else, I hope that we can put this injustice right!"

Notes

1. More than 1 million policyholders - including over 15.000 non-UK residents - suffered losses exceeding 5 billion Euros, by way of reductions to their retirement savings, due to the demise of the UK insurance company Equitable Life. British citizens have petitioned the European Parliament on this and their petitions are still being dealt with. In addition, on the initiative of Diana Wallis earlier this year, the European Parliament has obtained the authorization to set up a Committee of Inquiry to examine the facts and to ensure that European law is upheld.

2. Diana Wallis' interim report into the Equitable Life affair is available at http://www.europarl.ep.ec/omk/sipade3?PUBREF=-//EP//NONSGML+REPORT+A6-2006-0221+0+DOC+PDF+V0//EN&L=EN&LEVEL=2&NAV=S&LSTDOC=Y

3. Timetable:

• March 2006: adoption by Committee of Diana Wallis' Working Document.

• 21-22 June 2006: adoption by Committee of Interim Report

• 4-5-6 July 2006: adoption of interim report by Plenary

• September-December: more sessions of the Inquiry in Brussels and possibly London

• November-December: expected date for publication of UK Parliamentary Ombudsman's second report on Equitable Life

• 18 January 2007: formal deadline for final report

• 18 April 2007: deadline for final report if extended by 3 months by the Plenary