why the regulator is right to raise his voice

Since June 2022, a summary table of fees has been required of life insurance distributors. Despite recent progress on transparency, “a movement of professionals would be appropriate or even necessary”, declared in early December the vice-president of the regulator, Jean-Paul Faugère. In this forum, the president of fintech Yomoni welcomes the position taken by the regulator. But regrets that it is still very difficult or almost impossible to find information on the fees of management under mandate in the traditional networks.

The transparency, the fight over fees… it’s great, but frankly, everyone talks about it. Everyone puts it forward. That’s not really an argument. The sentence is painful. To listen to this finance professional, no one would believe in the virtues of transparency in the world of French savings management? On the contrary. With so many factors that can affect the evolution of savings products – inflation, rising interest rates, threat of recession – it is more than ever necessary not to hide.

Even if it is less glorious, the truth is even more essential during the phases of crisis

In a period of strong growth, it is easy to highlight past performance to promote the quality of products sold to the French. But, even if it is less glorious, the truth is even more essential during phases of crisis.

savers lacking confidence

To build a long-term relationship of trust, the exercise of transparency must begin as far upstream as possible from the search for the saver. The latter must have access to the simplest and most complete information to make his choice among the various players. This ranges from transparency on costs to the performance of solutions. However, it is clear that not all players in the sector offer the same guarantees of transparency.

In banks, there is no need to look for any information on the results of their management under mandate

In traditional networks, retail banks or private banks, there is no need to look for any information on the results of their management under mandate. No chance of getting anything out of your advisor’s office. Worse, the information provided in person will probably have between a month and a year lagdepending on the context: one month if the markets go up and one year if they go down… Just look at some advertisements to realize this: some establishments communicate in December 2022 results that date from January… 2021.

For banks and online brokers, the situation is hardly better. Updates to online information on piloted mandates stopped when the markets began to slump in earnest. As if everything had frozen since.

Some establishments communicate results in December 2022 which date from January… 2021

On the other hand, there is much more information on the results of management companies, in particular the performance of their funds, which are posted online daily by almost all players. However, this transparency owes a great deal to the regulations which have made the publication of this information compulsory.

More specific recommendations expected in early 2023

After the criticisms put in May 2022 on the management and entry fees of life insurance contracts, the Prudential Control and Regulation Authority (ACPR) recently warned that it could be led to make more specific recommendations at the beginning 2023, when rising interest rates revive French interest in these savings contracts. This promise goes in the right direction.

Life insurance: a simpler and more transparent offer of contracts demanded by the regulator

No actor has positive performances every day and it is its ability to pass cycles and less glorious periods that are the guarantee of a relationship of trust. This is why, ladies and gentlemen the regulators, it is indeed necessary to raise the tone to impose, finally, a clear and regular information which will strengthen the comparability and credibility of the proposals of savings professionals, in the interest of the French.

Yomoni fintech in a nutshell