Up to 70,000 Equitable Life customers face losing 10% of their investments if they leave the troubled life assurer, BBC News has learned.

Last week the High Court approved a compromise deal whereby policyholders with guaranteed pension returns would give up their guarantees in return for a one-off 17.5% boost to the value of their investments.

Other policyholders would receive a smaller one-off payment in return for agreeing not to sue the company for mis-selling.

But within minutes of the court's approval, Equitable's management team decided a change in policy that would prevent members leaving with their money.

Policyholders aged above 50 had previously been allowed to take their pensions early without paying the 10% exit penalty imposed on all other members leaving Equitable.

Broken guarantees

But now members who joined before July 1988 will have to wait until they are aged 60 to avoid the fine.

Equitable's problems came to light when it found it could no longer afford to pay policyholders with guaranteed pensions the amount they had originally promised when interest rates were higher.

The policyholders took the company to court when it tried to back out of its previous commitments.

Equitable Life lost the court battle and was left with huge legal bills, as well as being forced to pay the policyholders what it said it could no longer afford to.

As a result, it was forced to close to new business in December 2000 and sold part of its business to the Halifax - now part of HBOS - last February.