France’s banking watchdog has levied a €20m ($23.3m) sanction on Societe Generale over disclosure failures affecting some retail clients, reported Reuters.
In a statement, the Autorité de contrôle prudentiel et de résolution (ACPR) said the lender did not inform customers in 2018 that an insurance policy was being added automatically when they opened a new account product known as “Sobrio”.
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The watchdog said the bank fell short of requirements on pre-contract disclosure and failed in its obligation, as an insurance intermediary, to serve customers’ best interests.
Societe Generale said it had noted the ruling and moved to address the matters once they were identified during the ACPR’s 2024 inquiry, the news publication added.
The bank also said clients had been reimbursed.
SocGen said: “Our interpretation of the law applicable to combined banking and insurance product offerings differed from that of the authorities, and we are carefully examining the appropriate next steps in response to this decision, including the possibility of appealing to the Council of State.”
Meanwhile, in January, the French lender outlined a proposal to trim its workforce in France by 1,800 positions, primarily through “natural attrition”.
As part of its restructuring efforts, Societe Generale recently conducted a collaborative programme involving nearly 2,000 staff members.
In a statement at the time, the bank said: “In line with its strategic roadmap announced in September 2023 and its ambition for sustainable performance, Societe Generale continues to enhance its operational efficiency, simplify its organisation, and invest in skills development and internal mobility.”
Last year, Societe Generale introduced anti-financial crime technology from Palantir Technologies into its international retail banking operations.
The bank is making use of a range of tools developed on the Palantir Foundry platform. These tools feature analytics and machine learning capabilities aimed at identifying and addressing financial crimes such as money laundering and fraud.
