Litigation threats to Equitable Life

Following the adverse ruling of the House of Lords earlier this year, in respect of guaranteed annuity policies (GARs) requiring the honouring of £1.5bn liabilities to policyholders, and the collapse of subsequent talks with Prudential, Equitable Life has closed its doors to new business. While still solvent, this move was required by the Financial Services Authority (FSA) along with a change in their underlying investment strategy.