Following an investigation the UK Accountancy
and Actuarial Discipline Board (AADB) decided not to take any
further action and close the case against Ernst & Young UK
(E&Y) over its audits in Equitable Life Assurance
Society (ELAS).
“Following the conclusion of this
investigation, it has been decided that there is no realistic
prospect that a tribunal would make an adverse finding against the
actuary concerned. Consequently, no further action will be
taken and the case will be closed,” the AADB said.
ELAS became insolvent in 2000 after it was
decided that the insurer is to pay £1.5bn of annuities following a
House of Lords inquery.
In 2004 first concerns over E&Y’s role
were raised and the regulator Accountants’ Joint Disciplinary
Appeals Tribunal fined E&Y £500,000 and ordered it
to pay costs of £2.24m for failing to alert ELAS policyholders to
the society’s financial troubles.
