Compensate clients for rip-off policies, watchdog tells banks

The financial services authority AFM wants banks and insurance companies to compensate clients if it turns out that they have been sold products which are ‘not in their interest’, the Financieele Dagblad writes on Friday.

The paper says the 10 biggest banks and insurance companies in the Netherlands are planning to review all their product to see if they are in the interest of customers, in line with AFM requests.
The review will look at whether products – including mortgages and savings schemes – are too complicated, do not do what they promise or are unnecessarily expensive.
‘For example, we have made a clear agreement about the criteria savings products should meet,’ AFM board member Theodor Kockelkoren said.
The AFM cannot force financial firms to compensate customers because it would require a change in the law. Moves to amend the current legislation have stalled because of the cabinet crisis, the paper says.