NETHERLANDS - The Dutch central bank (De Nederlandsche Bank / DNB) has fined PGGM and ABP over a complaint regarding their marketing of levensloop products.
Spokesmen for both pension funds confirmed that protests had been issued in response to the fines, and as a result it remained to be seen whether a fine would actually need to be paid. The size of the fine issued was not revealed.
The DNB action was sparked by an initial complaint by the Dutch Association of Insurers (Verbond van Verzekeraars), alleging that the pension funds were unfairly marketing their levensloop products through their subsidiaries Loyalis (ABP) and Careon (PGGM). The association claimed this was against Dutch law.
However, the association is expected to formally withdraw its complaint tomorrow following an understanding which it said was reached with both funds.
A spokesman for the association said: “They were directing their customers to their commercial daughter companies, and that’s against the law and we complained for that reason.
“Our complaint has been withdrawn because ABP and PGGM have made the right decision to come our way, and to do the right things to ensure that it does not happen in the future.”
However, a spokeswoman for PGGM said: “It is not that we came to an agreement, more that they stopped the legal proceedings. We are still in a dialogue with them about our conflict in this particular case.”
She added: “We don’t agree with the fine and the things they say about us breaking the rules, this is still under discussion.”
A spokesman for ABP said: “The withdrawal of the complaint opens the door to a constructive dialogue with the insurers. In the meantime ABP will request more clarity on the way in which our insurance subsidiary is allowed to market its levensloop product.”
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