French Regulator Fines Société Générale 20 Million Euros for Insurance Distribution Violations
The French prudential regulator ACPR’s Sanctions Committee condemned Société Générale to pay a 20 million euro fine plus formal reprimand for serious violations of insurance distribution rules. The violations concerned two areas: the bundled offering ‘Sobrio’ which automatically included collective damage insurance without proper information and advisory compliance, and standalone insurance contracts sold outside the bundle that failed advisory duties and client interest obligations. Société Générale stated their interpretation of bundled product laws differed from authorities and they may appeal to the State Council.