Public inquiry into Equitable Life

The Government today confirmed there will be an inquiry into the troubled mutual insurer Equitable Life.

Lord Penrose will head the inquiry and will review "many years" of dealings, said the Economic Secretary to the Treasury Ruth Kelly.

A Financial Services Authority inquiry was set up in 1999 and today's announcement of the further investigation follows growing pressure from the beleaguered policyholders.

Equitable faces liabilities of £1.5bn in connection with guaranteed policies.