Swiss Regulator Probes Zurich Insurance on Policy Sales in Switzerland
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Swiss Regulator Launches Enforcement Against Zurich Insurance Over Policy Sales
FINMA Enforcement Proceedings and Impact on Zurich Insurance
Background of the Enforcement Action
ZURICH, July 27 (Reuters) – Zurich Insurance said on Monday that Swiss finance regulator FINMA has opened enforcement proceedings against the company after some Swiss customers were sold policies at lower prices than those agreed on with the regulator.
Details of the Sales Ban
FINMA imposed a sales ban on some policies in Zurich’s corporate life and pensions unit in Switzerland, which can for now only serve existing customers, the group said.
Duration and Uncertainty of Proceedings
It is unclear how long the proceedings, which were first reported by Swiss newspaper SonntagsBlick on Sunday, will last.
Regulator and Company Responses
FINMA’s Position
FINMA said it does not comment on individual cases but investigates possible financial market law violations and takes action if necessary.
Zurich Insurance’s Response
Zurich Insurance’s CEO Mario Greco told news agency Bloomberg the ban will have no impact on the group’s bottom line. The firm is, however, laying off more than 12 employees following the investigations, he said.
Impact on Employees
The firm is, however, laying off more than 12 employees following the investigations, he said.
Reporting Credits
(Reporting by Oliver Hirt and Marleen Kaesebier in Zurich; editing by Dave Graham and Tomasz Janowski)
