Equitable victims' call for action

THE Serious Fraud Office has still not decided whether to mount an investigation into troubled mutual Equitable Life seven months after the publication of Lord Penrose's report into the disaster.

Policyholders - who fear a Government whitewash - are unhappy at the length of time taken by the SFO to make up its mind.

SFO director Robert Wardle is waiting for the conclusions of his senior financial investigator who has not yet finished his assessment.

Sources say it is unusual for this to take so long, but point out that Equitable is an extraordinary case.

Wardle is understood to believe there is no justification in the mammoth Penrose report itself for a fraud probe. However, he has received other information from Equitable victims and wants to leave no stone unturned.

The SFO - dubbed the Serious Farce Office after losing a string of cases - is also likely to be worried about the difficulty of winning such a complicated case in front of a jury of laymen.

Policyholder Dr Michael Nassim said: 'The SFO appears inhibited by the same sort of constraints as Lord Penrose was subjected to.'

Equitable's chief executive Charles Thomson said: 'The new board has found no evidence of fraud. We are co-operating fully with the SFO and it is important they carry out a thorough review.

'Our legal actions against the former board are on course for hearing next spring.'