Inquiry Committee recommends better cooperation between regulators and scheme for compensation.
The European Parliament has criticized U.K. regulators in a report published on the collapse of the Equitable Life insurance company and called on Britain to set up a scheme to compensate policyholders, reports Reuters.
The European Parliament has investigated the Equitable debacle that occurred in 2000 that almost wiped out the savings of over a million policyholders because the business was unable to honour its life insurance and pensions policies.
In the final 373-page report, the parliamentary committee scolded national regulators, as well as the European Commission for failing to cooperate and do more to enforce standards.
The report said: "Had the UK regulators correctly applied the provisions of the [European Union's Third Life Directive], they would most likely have ... avoided the crisis at Equitable Life, which caused substantial losses to policyholders."
The committee called for Britain to "assume responsibility."
"The Committee... strongly recommends that the U.K. Government devise and implement an appropriate scheme with a view to compensating Equitable Life policyholders both within the U.K. and abroad," it said in the report.
Reuters also reported on March 5 that Former Equitable Life managing director and actuary Roy Ranson was expelled from The Institute of Actuaries for breach of its standard of integrity, competence and professional rules.
