Equitable won't sue Government
TROUBLED mutual Equitable Life has abandoned its plans to sue the Government and financial regulators over their role in its collapse.
The society said following legal advice it had concluded it had no 'realistic legal claims' against its former regulators the Treasury or Department of Trade and Industry or its current regulator the Financial Services Authority.
Its law firm Herbert Smith also warned that any claims made by policyholders would be 'complex, lengthy and costly', while the result would be uncertain.
Equitable chairman Vanni Treves said: 'In the light of the unequivocal advice of our lawyers, we will not squander members' money.
'If the board had been advised that there was a sustainable and cost-effective legal case, we would have pursued it, as we are doing with others.'
The news will come as a blow to the society's policyholders who had been pinning their hopes on gaining Government compensation after seeing the value of their policies slashed.
