The Equitable Life Assurance Society
The Penrose report, 2004
The Penrose report, 2004
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The Penrose report, commissioned by the [Treasury](/wiki/HM_Treasury "HM Treasury") in August 2001 and expected in 2002, was finally published in March 2004 after delays due to vetting by Treasury lawyers. The 818\-page report found that the company had made over\-generous payouts to policyholders, reaching the stage where "The Society was under\-funded to the extent of £4½ billion in the summer of 2001" (chapter 19, para 82\). Penrose said: "Principally, the Society was author of its own misfortunes. Regulatory system failures were secondary factors". He also accused the former Equitable management team of "dubious" practices and nurturing a "culture of manipulation and concealment". The Report was debated in parliament on 24 March 2004\.


How can regulatory system failures be prevented in the future?