According to reports in the UK media this week, policy holders with ailing mutual, Equitable Life have expressed concern regarding the Serious Fraud Office's failure thus far to launch an investigation into the firm's near collapse.
Several months have passed since the publication of Lord Penrose's report on the affair, and policyholders reportedly fear that a whitewash is likely. Although SFO director, Robert Wardle is understood to believe that nothing in the Penrose report justifies a Serious Fraud Office probe, he is said to be still examining other information provided by the policyholders themselves.
Over-payment of bonuses during the 1990's, and a failure to maintain sufficient reserves for the guarantees that it had offered customers left Equitable unable to honour its policy promises following a House of Lords ruling in 2000, which led to near-insolvency.
Policyholders who opted to receive a with-profits annuity are unable to transfer their investment away from Equitable, and have seen their pension values slashed by as much as 40% as a result of the society's financial woes.
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