Equitable Life report adopted

12.00.00am UTC (GMT +0000) Wed 9th May 2007

Sharon Bowles with Equitable Life petitioners

The European Parliament's probe into the UK authorities' role in what went wrong at the troubled mutual Equitable Life has been approved by a large majority in the European Parliament's Committee of Inquiry.

Sharon Bowles South East Liberal Democrat MEP and full member of the Committee said: "For the victims of the Equitable Life failure, the report delivers an analysis of the UK's flawed process of implementing EU law which, combined with the imminent report of the UK Parliamentary Ombudsman, should arm the victims with powerful findings.

"For MEPs this process has provided a once in a generation opportunity to focus on the law-making and implementation process of one particular directive, the third life directive. If our recommendations are taken on board, this will enhance the future lawmaking process.

"We have to get tough about access to cross-border redress. Whilst our preference maybe for out of court, so-called ADR (alternative dispute resolutions) systems, they have to be strong and more visible and there must always be the fall-back to cost-effective legal process across borders. It is essential that such rights be guaranteed in an internal market. In other words, no mobility or access to the internal market for business without concurrent rules on liability.

"Blame is attributed to the UK government for failure to transpose and implement the 3rd Life Directive coherently and for their generally hands-off or light touch regulatory system. The report also contains numerous forward-looking recommendations on better EU lawmaking and better access to cross-border redress for consumers and citizens.

"With an aging population the UK government has been urging us all to take out private pensions to supplement what state support we will get in our old age. However, high profile failures such as Equitable Life do not help give the public the confidence to so. Too many are afraid they will lose rather than gain from a pension scheme. It is essential people have faith in the system."

The report will now go to the full Plenary of the Parliament in Strasbourg in June.

ENDS