Equitable leans on ombudsman

EQUITABLE Life will consider taking parliamentary ombudsman Ann Abraham to judicial review if she announces tomorrow that she will not reopen her investigation into past wrongdoing at the mutual.

Abraham has been taking evidence for two months from more than 2,000 sources, including MPs, government departments and the regulator, to decide if she should take a fresh look at the mutual.

Some, including Equitable Life boss Vanni Treves, believe Abraham's reopening of the case is the only way in which its 350,000 policyholders will obtain compensation for losses they suffered in the wake of the society's financial crisis.

In her initial report 12 months ago, Abraham cleared the Financial Services Authority of blame for the mutual's near-collapse. But after this year's report by Lord Penrose, which extensively criticised the regulators, Abraham has been under renewed pressure to open a fresh investigation.

Many want her to extend her inquiry to include the workings of the Government Actuary's Department. Like the FSA, the Treasury and the Department of Trade & Industry, it failed to pick up warning signals that Equitable was in poor health.

Abraham's office refused to comment on Friday. But experts believe she will decide against, or perhaps agree to a restricted review.

Treves said: 'Policyholders deserve a fresh inquiry. Until we know her decision, we will rule nothing in and nothing out.'