Hidden management fees
For years, two French banks Banque Populaire and Caisse d’Epargne sold life insurance policies and savings plans which were managed by the BPCE Group. In the brochures, the banks failed to mention any management fees for these products.
French consumer advocates however found out that many of these funds were subject to hidden fees, lowering the revenues of consumers. On average, these hidden fees reduced the revenue margin for consumers by 0.2%. For some funds, the loss went up to 0.57%. In 2017, the French stock market regulator imposed a record fine of €35 million and officially blamed the banks. The French consumer association UFC-Que Choisir has initiated a group action against the banks.