Penrose predicts another Equitable

penrose report

fsa proposals are step in the right direction but greater transparency in with-profits is needed

Lord Penrose suggests in his report on Equitable Life that a repeat of the mutual's demise could occur again despite a tougher regulatory environment and changes to with-profits funds. He notes that while Equitable's actuarial methodology "may have been uncommon, even unique", it was allowed to continue without any disciplinary action being taken by relevant actuarial bodies. He says: "It must be assumed that it was within the scope of acceptable actuarial practice in the profession's view. If so, it could happen again. The present proposals do not equip the regulator to take effective ac...