Finma has imposed a sales ban on certain life insurance policies offered by Zurich. The enforcement action was triggered after customers in Switzerland were sold policies – which are subject to strict regulatory requirements – at lower prices than had been agreed with Finma.

«It is regrettable that we did not identify the issue ourselves, despite all the audits and controls we conduct,» Mario Greco told Bloomberg. Agreed corrective measures had not been implemented, ultimately leading to the enforcement proceedings.

As a consequence, the affected unit within Zurich’s Swiss business is, for the time being, only allowed to service existing customers. It remains unclear how long the investigation will continue. The business unit generates an annual profit of around 20 million Swiss francs. Greco said the sales ban would therefore have «no impact» on the group’s overall financial results.

Zurich had initially declined to comment on the findings of an investigation by the Swiss newspaper SonntagsBlick. According to the newspaper, the focus of the investigation is believed to be deficiencies in the company’s internal control system (ICS). It also reported that investment in the relevant platform had apparently been cut back in recent years.

Zurich Insurance Group is one of Switzerland’s largest providers of occupational pensions. Its Vita collective foundation is its flagship pension vehicle, serving 27,000 affiliated companies and around 150,000 insured members. The foundation manages more than 22 billion francs in pension assets.