Treasury keeps Equitable papers secret

THE Treasury is holding back the publication of sensitive documents relating to the near-collapse of insurer Equitable Life. Officials have released a number of papers relating to the Equitable disaster on the Treasury website following a request under the new Freedom of Information Act.

But the Treasury said that the disclosure of other documents is still under consideration by its lawyers. They may be made public at a later date.

The papers withheld by the Treasury are believed to concern the buy-back by Equitable of its own bonds and an exchange between the Financial Services Authority and the Financial Ombudsman Service.

The Treasury and the FSA have both come under heavy fire for their handling of the Equitable affair.

Policyholders are angry at the Government's reluctance to pay compensation despite the damning findings of a report into the misfortunes of the mutual insurer by the Scottish judge Lord Penrose. The FSA, which failed to avert the scandal, has subsequently pushed through a series of reforms.

The documents published on the website include a letter sent last October from Equitable boss Charles Thomson to Financial Secretary Stephen Timms.

Thomson criticised the Government for its lack of progress in pushing through legislation to protect policyholders from liability if the insurer went bust.