By Tapan Panchal
LONDON--The U.K.'s financial services regulator Thursday fined
8.4 million pounds ($14.1 million) to a unit of Netherlands-based
insurance company AEGON Group (AGN.AE) in relation to improper
sales of accident insurance products.
The Financial Conduct Authority has fined Stonebridge
International Insurance Limited.
The regulator said between April 2011 and December 2012,
Stonebridge targeted low- and middle-income customers without
college degrees or professional qualifications with its insurance
products. It encouraged people to buy more expensive products and
actively discouraged customers from cancelling their policies.
The FCA said Stonebridge's telesales marketing didn't provide
clear, fair and balanced information. It also found that the
company's poor systems and controls and inadequate oversight
breached the FCA's requirements.
Stonebridge is carrying out an independent review and has
already paid redress worth a total of GBP400,000 to affected
customers in the U.K. Up to 486,444 customers across the U.K. and
European Union could be affected.
In a statement on its website, Stonebridge acknowledged the
findings of the FCA and said the findings don't affect day-to-day
operations.
All policies remain in force and Stonebridge will honor the
terms and conditions of all existing policyholders, the company
said.
Write to Tapan Panchal at tapan.panchal@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires