UK Financial Regulator Fines AEGON Unit Stonebridge

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 [e-mail]

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