Equitable report is 'imminent'

THERE is mounting speculation that the Government intends to publish the Penrose report into the near collapse of Equitable Life - Britain's oldest insurance company - later this week.

Scottish judge Lord Penrose handed in his 800-page report into the events leading to Equitable's difficulties on 20 December.

Policyholders have become increasingly fearful that the long delay might mean that the document would never be released.

The outcome of the inquiry is of vital importance to the 1m people holding Equitable Life policies. If any evidence of maladministration is uncovered at the regulators - the Financial Services Authority, the Treasury and the Department of Trade and Industry - the Government could find itself liable for compensation claims.

If there are no further hiccups, the release of the report to Parliament could come as soon as Thursday.

The long delay between the completion of the report and its publication remains a matter of conjecture. But it is understood that the Treasury has been waiting on the Serious Fraud Office and did not want to move to publication until the SFO had reached a preliminary finding.

The SFO's inquiries are thought to focus on a reinsurance contract put in place by the previous Equitable Life management which may have been used to hide the true solvency difficulties of the company from policyholders and regulators.

The Financial Services Authority is also reportedly ready to take regulatory action against at least one former Equitable Life official who could find himself banned from the City for life. The official has been told of the charges and penalties and has asked for a hearing before the FSA appeals tribunal.

The new team at Equitable Life - headed by City lawyer Vanni Treves - has been increasingly frustrated by the failure to release the Penrose report which has cast a shadow across the reconstituted company and its policyholders.

Key executives are hoping for access to the report before publication so that appropriate responses can be prepared.