In legal, actuarial and marketing costs, it has been estimated that it will cost members up to £30 each for the proposed rescue deal and with 1m policyholders that's £30m.
The costs so far for establishing and publishing the rescue package have been estimated at £15m by Vanni Treves, Equitable Life Chairman, at a recent policyholders meeting. These costs will further escalate over the coming months.
This figure does not include costs to members for potential lost guarantees, reduced and nil bonuses, the costs of seeking advice from other financial advisers and the costs to members for exit penalties imposed for those who have moved their money elsewhere. It is merely for the rescue plan itself, for which voting by members is now closed.
See our story 04/01/02 for details.
Our Opinion
This cost appears to be extremely high for the promotion of the proposed compromise deal. The compromise deal vote may not even be successful - so guess who is paying again?
For comment and help on your Equitable Life plan please contact us.