Fraud Office Investigation Will Give New Hope To Equitable Life Losers - Cable

5.44.45pm GMT Fri 23rd Jan 2004

News that the Serious Fraud Office has been asked to look into the Equitable Life fiasco following the Government's first sight of the Penrose report, will give hope to 800,000 policy holders who have lost a lot of money, Liberal Democrat Shadow Chancellor Vincent Cable said today.

Dr Cable said: "The involvement of the Serious Fraud Office now greatly raises the stakes. It will also raise the hopes of thousands of Equitable Life policy holders who have lost money through no fault of their own."

"Until now the common assumption has been that Equitable Life's problems were as a result of financial mismanagement and regulatory incompetence."

"If the Serious Fraud Office finds otherwise, Equitable Life policy holders should be entitled to compensation, just as those who lost money in the Barlow Clowes affair were compensated."

"If the Government has failed to exercise proper supervision in its regulatory capacity, and if fraudulent activity can be proved, Gordon Brown cannot back away from compensation."

"Mr Brown, in opposition, pressed for compensation for BCCI investors who were also victims of fraud. He cannot now turn his back on the hundreds of thousands of people who have lost money in the Equitable Life scandal - many of whom are pensioners or nearing retirement."