2006/469/EC: Decision of the European Parliament of  18 January 2006  on setting up a Committee of Inquiry into the crisis of the Equitable Life Assurance Society
Date: 2006-01-18
Institutions: European Parliament
Subjects: United Kingdom, bankruptcy, committee of inquiry, consumer protection, financial legislation, infringement of EU law, insurance company, life assurance

L 186/58

EN

Official Journal of the European Union

7.7.2006

II

(Acts whose publication is not obligatory)

EUROPEAN PARLIAMENT

DECISION OF THE EUROPEAN PARLIAMENT

of 18 January 2006

on setting up a Committee of Inquiry into the crisis of the Equitable Life Assurance Society

(2006/469/EC)

THE EUROPEAN PARLIAMENT,

Having regard to Article 193 of the EC Treaty,

Having regard to Decision 95/167/EC, Euratom, ECSC of the European Parliament, the Council and the
Commission of 19 April 1995 on the detailed provisions governing the exercise of the European Parlia-
ment's right of enquiry (1),

Having regard to Rule 176 of its Rules of Procedure,

Having regard to the request presented by 213 Members of the European Parliament,

Having regard to the decision of the Conference of Presidents of 14 December 2005, agreeing in principle
to establish a Committee of Inquiry into the allegations raised by petitions 0611/2004 by Arthur White
(British) and 0029/2005 by Paul Braithwaite (British), on behalf of the Equitable Members' Action Group
and by subsequent petitions on the same subject submitted by German and Irish petitioners, all of which
related to the Equitable Life Assurance Society (Equitable Life),

HAS DECIDED AS FOLLOWS:

Article 1

A Committee of Inquiry shall be set up to investigate alleged contraventions or maladministration in the
application of Community law in relation to the crisis of Equitable Life, without prejudice to the jurisdiction
of national or Community courts.

The Committee of Inquiry shall:

Article 2

— investigate alleged contraventions or maladministration in the application of Council Directive
laws, regulations and administrative
92/96/EEC of 10 November 1992 on the coordination of
life assurance and amending Directives 79/267/EEC and 90/619/EEC
provisions relating to direct
(third life assurance Directive) (2), now codified by Directive 2002/83/EC of the European Parliament
and of the Council of 5 November 2002 concerning life assurance (3), by the United Kingdom's
competent authorities in relation to Equitable Life, notably as regards the regulatory regime and the
monitoring of the financial health of insurance undertakings,
including their state of solvency, the
establishment of adequate technical provisions and the covering of those provisions by matching assets,

(1) OJ L 113, 19.5.1995, p. 1.
(2) OJ L 360, 9.12.1992, p. 1. Directive as last amended by Directive 2002/87/EC of the European Parliament and of the

Council (OJ L 35, 11.2.2003, p. 1).

(3) OJ L 345, 19.12.2002, p 1. Directive as last amended by Directive 2005/68/EC (OJ L 323, 9.12.2005, p. 1).

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— assess, in this respect, whether the Commission has properly fulfilled its duty to monitor the correct and
timely transposition of Community law and identify whether systematic weaknesses contributed to the
situation that has arisen,

— assess allegations that the UK regulators consistently failed, over a number of years, and at least since
1989, to protect policy holders by exercising rigorous supervision of accounting and provisioning
practices and the financial situation of Equitable Life,

— assess the status of claims by non-UK European citizens and the adequacy of remedies available under

UK and/or EU legislation for policy-holders from other Member States,

— make any proposals that it deems necessary in this matter.

Article 3

The Committee of Inquiry shall present an interim report to Parliament within 4 months of starting its
work, with a view to presenting its final report to Parliament within 12 months of the adoption of this
decision.

The Committee of Inquiry will be composed of 22 Members of the European Parliament.

Article 4

Done at Strasbourg, 18 January 2006.

For the European Parliament
The President

J. BORRELL FONTELLES