The Government has rejected renewed calls to provide compensation to Equitable Life policyholders who lost out when the insurer was forced to close to new business in 2001.
Yesterday, Labour MP for Wolverhampton Rob Marris urged chief secretary for the treasury Liam Byrne to stop being so "stubborn and slow" with regards to compensation. However Byrne said he would not revisit the issue of compensation. He said: "First, I do not believe the government should be the compensator of last resort when there has been regulatory failure; and secondly, I simply do now think that it would be rational or a good use of public money to provide compensation when there have been conclusions that we simply do not accept. "I do not subscribe to the [parliamentary] ombud...
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