Annuitants’ solicitor estimates losses to be in the region of £6.5bn
Ex-gratia payments are to be made to policyholders who have been “disproportionately” affected by Equitable Life’s maladministration. Sir John Chadwick, a former Lord Justice of Appeal for Jersey and Guernsey, will advise on the government’s payments scheme announced last week. Sir John will assess which policyholders have been hardest hit; the extent of those losses; and what proportion of losses can be ascribed to government maladministration and what proportion to Equitable Life and its advisers. Robert Morfee, partner at Clarke Willmott, who acts for Equitable Life annuitants, says he is disappointed that the government has not made more fulsome acceptance of its failings. “Annuitants’ total losses are estimated by my firm to be in the region of £6.5bn. The key thing is that annuitants couldn’t cash their policies in and get out whereas others could. They were locked in and trapped.” He adds, however, that Sir John has been given a lot of scope by the government: “While they have taken
