Equitable Life Assurance Society

The Society has worked closely with the Financial Services Authority (FSA) since its decision to put itself up for sale. We have been in particularly close touch since it became apparent in recent days that an offer for the Society might not, in the event, be made. As the management of the Equitable said after the House of Lords judgement, the institutions special circumstances meant that a sale was in the best interests of policyholders, as it would provide the investment flexibility necessary to permit long-term continuation of business as normal. The Society will now need to review its investment strategy and, as is normal in a closed fund, this is likely to lead to a progressive move away from equities to lower risk investments over time.

The FSA has stressed the importance of the Equitable providing comprehensive and timely information to its policyholders so that they can consider their options fully. To this end, the Equitables statement describes the process which it has established for helping policyholders to decide whether they should take any immediate action. This includes a telephone number for policyholders seeking advice (0870 900 8020).

Policyholders who have effected policies in the last 14 days, and who are therefore within the statutory cooling off period, have the option of cancelling their new policies. The Equitable has extended this period for all such policyholders to 22 December 2000 to allow them time to consider the impact of this announcement.

The FSA will continue to monitor closely the operations of the Equitable. The Society continues to meet the statutory solvency requirements.