MPs demand probe into Equitable

NEARLY 100 MPs have signed an early day motion calling for an immediate inquiry into Equitable Life and the City watchdog's handling of the affair. The move follows concerns that policyholders' interests would be swept aside now that a compromise has been struck to save the beleaguered mutual.

Roy Beggs MP has demanded an immediate inquiry by the Parliamentary Ombudsman into 'gross dereliction of duty of the regulators appointed by the Government'.

The Ombudsman is already probing the FSA's handling of the collapse and has now taken on over 30 individual cases which could form the basis of a class action. Vincent Cable MP said: 'MPs have signed this motion because they feel there is a lack of urgency and focus.'

Separately, fund managers who fail to comply with the Myners principles could face a Government crackdown next year. The Treasury is ready to introduce legislation forcing them to disclose their charges to pension funds. Economic Secretary Ruth Kelly is set to tell the National Association of Pension Funds' conference in Edinburgh today that the Government fully supports the disclosure call from fund manager Paul Myners.