§ Mr. PickthallTo ask the Chancellor of the Exchequer what contingency plans have been made to help pensioners in the event of Equitable Life going into liquidation. [86506]
§ Ruth Kelly[holding answer 12 December 2002]: Equitable Life issued its interim accounts on 15 November and made it clear that it remained solvent. The FSA continues to monitor the company to ensure that it is complying with regulatory requirements.
Should an insurer become insolvent a safety net for policyholders is already in place in the shape of the Financial Services Compensation Scheme. The Scheme will act if a company has become insolvent or gone out of business. The Scheme will first seek to take measures to safeguard policyholders, for example by trying to ensure that policies are transferred to another company. If that is not possible then compensation may be payable to eligible policyholders, subject to the Scheme rules.