Equitable warns former officials

THE prospect of Equitable Life suing its former directors and advisers grew today when the troubled insurer revealed its internal investigation had produced a string of 'serious concerns'.

Equitable has written to 20 former directors, former auditors Ernst & Young and former lawyers Denton Wilde Sapte, warning them it will sue if it does not receive satisfactory answers. It is believed to have set a 31 January deadline for responses.

Former directors sent the letters include Jennie Page, Peter Sedgwick, Christopher Headdon and Manchester United chairman Professor Sir Roland Smith.

The insurer said Herbert Smith, the City law firm that conducted the investigation, had uncovered a 'number of issues of concern'. Accountant PricewaterhouseCoopers had also unveiled 'serious concerns' in its investigation of Ernst & Young's role.

But Equitable said it would await the findings of the Treasury-appointed Penrose inquiry into its affairs before deciding whether to pursue legal action against the regulators.

'These are clearly very serious matters,' chairman Vanni Treves said in a letter to Equitable policyholders. 'Your board has not taken these actions lightly.'

Those named in the letters were directors or advisers to Equitable at various times between 1993 and last year, when the insurer closed to new business.