News Date: Tuesday 19th August 2008
Conservative Party Position on the Ombudsman Report on Equitable Life
It was Conservatives who forced the Government to allow the Parliamentary Ombudsman to investigate the regulation of Equitable Life and we welcome her report.
Ann Abraham has rightly highlighted a number of regulatory failings, including those that occurred between 1998 and 2001. These failings happened when Gordon Brown held ultimate responsibility for this area at the Treasury, and he cannot escape the blame for this.
I am glad that the report accepts the principle that there should be payments to those who have lost out. The job now is to assess how much these payments should be and to whom they should be paid.
The Ombudsman is right when she makes it clear that policyholders cannot expect to receive payments for the full extent of their losses and any payment scheme must be consistent with sound public finances.
George Osborne MP, the Shadow Chancellor, has called on the Government to admit to its responsibility, issue the apology that the Ombudsman demands and create the payment scheme. If it doesn't do this, a Conservative Government will.
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