Equitable Life former chief executive banned as not fit and proper

Christopher Headdon, former appointed actuary and chief executive of the Equitable Life Assurance Society, has been banned for holding a significant management role in an authorised firm until May 2010. In 1999 Equitable sought to cover its Guaranteed Annuity Rate (GAR) exposure through an £800 million reinsurance “Treaty” with the Irish European Insurance Company (IRECO).The Treaty featured a clause under which it could be renegotiated if withheld claims amounted to £100 million. Mr Headdon and IRECO for Equitable Life arranged in a Side Letter that the Treaty would be terminated if the renegotiations proved unsuccessful, a move that might have led Equitable to breach FSA requirements. Mr Headdon failed to notify the FSA of the Side Letter’s existence when the regulator expressed concern about the clause. He also signed off the annual regulatory returns without qualification in respect of the Side Letter.