Liz Lynne backs Euro probe of Equitable Life

3.03.30pm GMT Thu 26th Jan 2006

Liz Lynne, Lib Dem MEP for the West Midlands, has welcomed the news that the European Parliament will investigate the UK government's role in the collapse of the insurance company Equitable Life.

More than 1 million UK policyholders are thought to have lost over £4 billion from their pensions, savings or investments following the collapse of the Equitable Life Society in 2000. The European Parliament last week appointed 22 MEPs to a Committee of Inquiry to probe alleged contraventions of community law.

Commenting on the European Parliament's investigation, Liz Lynne said:

"People across the West Midlands were affected by the collapse of Equitable Life, and I have had letters from many constituents demanding a full investigation.

"While there have already been several investigations in the UK, there remain pressing questions at an EU level. Did the UK fail to properly implement EU law so that there was effective regulation? Was the loss caused to policyholders in the West Midlands and across the EU attributable to that failure? Are there or indeed should there be redress mechanisms available?"

"This investigation is long overdue. I hope that at last people who may have lost all their life savings will get the answers they deserve."

ENDS

Notes to Editors:

The committee will have 12 months to submit its report to the European Parliament, but it will produce an interim report within four months.