In May, the Netherlands Authority for the Financial Markets imposed an administrative fine of 500,000 euros on insurer Aegon. According to the AFM, Aegon supplied a pension product that could end up with customers for whom it was not intended due to errors during development.
It concerned the Distributing Investment Pension (UBP), a complex pension product with variable benefits. The amount of the payment depends on factors such as investment results and the product cannot be changed during the term. Customers must be aware of the risks and want to bear them.
According to the AFM, however, Aegon did not comply with the statutory product development requirements when developing the pension, which ensure that products take sufficient account of the interests of the customer. As a result, the pension could also end up with customers who did not know the risks well. The pension was offered by Aegon between November 2016 and 2018.
Although, according to the AFM, Aegon has taken a constructive position during the investigation and has also taken measures to prevent a recurrence, the AFM considers the fine of EUR 500,000 to be appropriate. Aegon also did not object to the decision, which made it irrevocable at the end of June.