Third delay for Equitable report

Ann Abraham's report was originally due to be published in 2005.

Campaigners have criticised a further delay to a study into the government's regulation of Equitable Life, the insurer that nearly collapsed in 2000.

The Parliamentary Ombudsman report will now not be published before April 2008.

The ombudsman, Ann Abraham, blamed the delay on "substantial representations" received from government bodies in response to her draft report.

Policyholders argue the continuing delay is doing "immeasurable" damage to trust in financial services.

New timetable

This is the second report about Equitable from the Parliamentary Ombudsman.

Ann Abraham's first report was published in July 2003, and cleared the Financial Services Authority (FSA) of any wrong doing.

In July 2004 she announced she would reopen her investigation, and focus on the government's role in regulating Equitable.

The damage to trust in regulators and the finance industry done by the Equitable debacle is immeasurable Paul Braithwaite, Equitable Members Action Group

She had originally expected to publish her report by the end of 2005, but subsequently announced a series of further delays.

In January she issued a draft report to the government and the FSA which prompted "substantial representations" in response.

She has now reviewed her report in the light of those responses, but, as before, plans to circulate her revised draft to relevant public bodies and other interested parties.

She said she would write to MPs again towards the end of April 2008 with details of a new timetable.

Equitable Life campaigners condemned the announcement that the report would not now be published until next year.

Policyholders hope the report could pave the way for the government to pay compensation if it is criticised.

"Every delay has been orchestrated by the Treasury," said Paul Braithwaite, general secretary of the Equitable Members Action Group.

"The damage to trust in regulators and the finance industry done by the Equitable debacle is immeasurable," he added.

'Excessively lenient'

Equitable closed to new business in 2000, after the House of Lords said it had to honour promises made to pension policyholders which it could not afford to pay.

More than a million policyholders in the UK and several thousand in Ireland and Germany saw the value of their policies fall sharply as a result.

In June the European Parliament called on the UK government to compensate policyholders after a report from MEPs said it had failed to ensure that EU legislation on insurance had been implemented properly.

It also said that the UK's system of financial regulation had been "excessively lenient" in failing to ensure that Equitable was solvent.