Equitable Life (Payments) Bill [Bill 62 of 2010-11]

This paper has been written for the Second Reading debate in the House of Commons. The Bill provides the authority for a payments scheme for eligible former and current Equitable Life policyholders in respect of the consequences of maladministration by regulatory bodies as identified by the Ombudsman and accepted by government. The paper outlines the commercial problems of Equitable Life; the series of investigations into the regulation of its activities; and the work of the office of Sir John Chadwick in devising principles for designing a workable system of payments. The Bill is a short, simple and technical measure. Although the precise shape of the payments scheme is as yet unknown, this Bill provides the authority for money to be paid once it is set up and clarifies the tax treatment of future payments.