Penrose says stronger regulatory regime could not prevent another Equitable Life

Lord Penrose has suggested in his report today's tougher regulatory regime does not have the power t...

Lord Penrose has suggested in his report today's tougher regulatory regime does not have the power to stop a life office from using the sort of actuarial assumptions that helped lead to Equitable's demise. He noted Equitable Life's actuarial methodology "may have been uncommon, even unique", in that it could continue without any disciplinary action being taken by relevant actuarial bodies. He said: "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 tak...