Ann Abraham

The parliamentary ombudsman has announced that she will re-open investigations into the problems at Equitable Life.

The decision is set to be welcomed by policy holders, many of whom have seen a new review by Ann Abraham as their best chance of redress.

Abraham took her decision following publication of the Penrose report and the response of the government to that study.

"The concerns surrounding the prudential regulation of Equitable Life remain despite the publication of the Penrose Report and the government's response to it," she said.

"I took the view that I should consider whether a new investigation by my office was justified as Lord Penrose did not deal with questions of maladministration or redress."

Announcing her decision, the watchdog also called on the government to bring the Government Actuary's Department (GAD) into her jurisdiction.

"I consider that there is sufficient initial evidence to suggest that the actions of GAD are key to an assessment of whether maladministration by the prudential regulators caused an injustice to complainants that has not been put right," she said.

"I believe therefore that GAD's actions must be brought within my jurisdiction."

That called was backed by Andrew Tyrie, the shadow financial secretary.

"I strongly support the parliamentary ombudsman's decision to reopen her inquiry into the Equitable Life scandal," he said.

"The government should stop dragging its feet and permit the ombudsman to look at the Government Actuary’s Department’s role in the whole of this sorry affair.

"If the government fail to do this, we’ll know where blame really lies."

And Liberal Democrat Treasury spokesman Vincent Cable also backed the investigation.

"It is vital that this report is produced within a reasonable timeframe," he added.

"It has been over three years since Equitable closed its doors and policyholders should not be left waiting for any longer than absolutely necessary."