Dentons almost clear as the Equitable aims at auditors

INVESTIGATION: Herbert Smith probe aids City counterparts

City firm Denton Wilde Sapte was almost given an 'all-clear' this week following the news that collapsed pensions provider Equitable Life is to pursue its former auditor Ernst & Young through the courts.

Britain's oldest mutual society, the Equitable - which closed to further investments in 2001 following the discovery of a 1.5 billion shortfall in its accounts - appointed City solicitors Herbert Smith last year to seek explanations for a number of matters of concern from the Equitable's former advisers.

A separate investigation by PricewaterhouseCoopers of Ernst & Young has now resulted in legal action against the Equitable's former auditor.

Dentons has fared better.

A letter from the Equitable to policy holders said: 'We have reviewed replies received from the society's former legal advisers.

At this stage we are advised not to proceed against them.'

However, a spokesman for the Equitable confirmed that this position may change.

A spokeswoman for Dentons said: 'We fully co-operated with Herbert Smith in its inquiry, and we welcome the announcement from the Equitable.'

Coincidentally, Dentons is simultaneously investigating Herbert Smith among other former advisers to the Independent Insurance, another company which collapsed last year.

The results of that investigation are still pending.

Jeremy Fleming