Reports that the Equitable Life compensation scheme is also failing, makes for alarming reading.
Equitable Life closed around 12 years ago, amidst accusations of regulatory failure.
Millions of pounds were subsequently allocated to customers who had lost money through investing in this mis-managed scheme. However, the National Audit Office has revealed that since this time, around one-fifth or 200,000 savers have been unable to be traced – meaning that many customers could be missing out on the £370m pot of money.
The government’s compensation scheme has already been extended in 2011, until March next year, in an attempt to track down relevant individuals. However, it appears that despite its failure to do so, almost three-quarters of the dedicated £57m administrative budget has already been spent, with 35% of the original Equitable Life customers having received their due payment.
Of course, with Equitable Life having closed down over a decade ago, it may well be that a sizeable proportion of its original savers may now be deceased – a sad conclusion to a resource in which thousands of people placed their trust, and their money.