Increased regulation

The financial sector has been subject to a lot of new regulation in recent years. New laws on tax and data privacy have been introduced. In some of our markets, changes are going much further.

What's the issue?

The UK has been through a period of unprecedented reform, which has removed barriers and gives savers more choice.

In the UK and the Netherlands, we have seen the end of commissions to brokers for certain products. That's a big step for an industry traditionally reliant on selling through intermediaries.

In the US, the Dodd-Frank Act led to significant reform of financial regulations. In Central and Eastern Europe, a number of governments have effectively re-nationalized pension systems.

In November 2015, Aegon was named as a Global Systemically Important Insurer (G-SII). Inclusion on the list can mean closer regulatory scrutiny, however we do not expect that this will be a constraint on capital use for us.

What are the opportunities and what are the risks?

We operate in a highly-regulated industry. This means that regulatory changes can have a significant impact on our business. Regulations influence how we price and sell products, how we manage risks, or how we organize our company. Changes can bring restrictions but can also open up new markets.

What are we doing about it?

We dedicate significant resources to making sure that we comply with all existing and new regulation. Aegon and regulators both want to ensure that the interests of our customers are protected, although our views on how to achieve this may differ. We work closely with regulators – both directly and through industry associations – to ensure that regulations are effective, while not creating unnecessary inefficiency.