New rebel joins Standard Life battle

A SECOND rebel policyholder has emerged as an independent candidate for the board of mutual insurer Standard Life. Paul Braithwaite, well known in financial circles for campaigning on behalf of policyholders of Equitable Life, said he would stand on a joint ticket with retired banker Michael Hogan at the annual general meeting in April.

Both say they want to safeguard policyholders' interests as the company proceeds to a flotation due for autumn 2006.

Hogan announced his decision to stand last week and is financing his own campaign.

To stand as candidates, they each must gain support from 250 with-profits policyholders. But the voting system, where Standard's chairman Sir Brian Stewart will be able to cast hundreds of thousands of member votes, means they are unlikely to succeed in getting on the board.

Braithwaite said: 'This is the time when policyholders most need an independent representative in the boardroom.'

The probability of an out-of-court settlement between Equitable Life and its former auditor Ernst & Young increased after Friday's High Court appearance by the two sides.

It was revealed in court that KPMG, independent experts for Ernst &Young, could not support the auditor in defending a near £2bn claim made by Equitable for audit failure that allegedly contributed to the mutual teetering on the verge of financial ruin and closing to new business in December 2002.

'We have a good claim and we will see Ernst & Young in court in April unless a settlement is reached before then,' said Equitable chairman Vanni Treves.

But Ernst & Young said Friday's events represented a 'successful day in court' and that its defence was stronger than ever.