International Letters

EQUITABLE LIFE MEMBERS

International Policyholders

THE POSITION OF 'INTERNATIONAL' POLICYHOLDERS IN RELATION TO THE OMBUDSMAN'S INVESTIGATION

Dear Ms Felgate

THE POSITION OF 'INTERNATIONAL' POLICYHOLDERS IN RELATION TO THE OMBUDSMAN'S INVESTIGATION

You emailed me on 18 November 2004 to ask whether the Parliamentary Ombudsman's investigation into the prudential regulation of the Equitable Life Assurance Society covered the position of those policyholders who had bought from Equitable's overseas or offshore operations.

As you know from the regular updates I have provided since then, both the factual position and the legal position on this was not immediately apparent and we sought legal advice in order to ascertain whether our investigation was capable of covering the position of such 'international' policyholders.

Lawyers for the Guernsey Financial Services Commission and for Equitable Life both made helpful submissions as to their understanding of the factual position in relation to the prudential regulation of the Society's international business. In addition, we have now received a response from Her Majesty's Treasury to our request that they indicate their understanding of the position.

I can now inform you that, in the light of these submissions and of the legal advice we have received on these matters, our decision is that our investigation is indeed capable of covering the position of all international policyholders who claim to have suffered injustice as a result of maladministration by the prudential regulation of Equitable Life. Any findings and recommendations we might make at the conclusion of the investigation will therefore also address the position of such policyholders.

Our decision is based on the confirmation by the Treasury that in practice the prudential regulation of all Equitable's business was undertaken by the UK regulator and that they agree that complaints about such regulation would constitute complaints concerning rights or obligations arising within the UK.

I should emphasise that our investigation, the terms of reference for which are attached to this email, does not cover complaints about any alleged mis-selling of policies or annuities, whether from 'domestic' or 'international' policyholders. Those matters are not within the jurisdiction of the Parliamentary Ombudsman.

	EQUITABLE LIFE MEMBERS International Policyholders
	THE POSITION OF 'INTERNATIONAL' POLICYHOLDERS IN RELATION TO THE OMBUDSMAN'S INVESTIGATION

	Dear Ms Felgate THE POSITION OF 'INTERNATIONAL' POLICYHOLDERS IN RELATION TO THE OMBUDSMAN'S INVESTIGATION You emailed me on 18 November 2004 to ask whether the Parliamentary Ombudsman's investigation into the prudential regulation of the Equitable Life Assurance Society covered the position of those policyholders who had bought from Equitable's overseas or offshore operations. As you know from the regular updates I have provided since then, both the factual position and the legal position on this was not immediately apparent and we sought legal advice in order to ascertain whether our investigation was capable of covering the position of such 'international' policyholders. Lawyers for the Guernsey Financial Services Commission and for Equitable Life both made helpful submissions as to their understanding of the factual position in relation to the prudential regulation of the Society's international business. In addition, we have now received a response from Her Majesty's Treasury to our request that they indicate their understanding of the position. I can now inform you that, in the light of these submissions and of the legal advice we have received on these matters, our decision is that our investigation is indeed capable of covering the position of all international policyholders who claim to have suffered injustice as a result of maladministration by the prudential regulation of Equitable Life. Any findings and recommendations we might make at the conclusion of the investigation will therefore also address the position of such policyholders. Our decision is based on the confirmation by the Treasury that in practice the prudential regulation of all Equitable's business was undertaken by the UK regulator and that they agree that complaints about such regulation would constitute complaints concerning rights or obligations arising within the UK. I should emphasise that our investigation, the terms of reference for which are attached to this email, does not cover complaints about any alleged mis-selling of policies or annuities, whether from 'domestic' or 'international' policyholders. Those matters are not within the jurisdiction of the Parliamentary Ombudsman.