The Financial Supervisory Authority of Norway published an update noting that the Norwegian Ministry of Finance has upheld its 28 October 2014 decision requiring Sparebank 1 Skadeforsikring, now Fremtind Forsikring AS, to cease marketing and selling benefit programmes described as product packages. The case concerns discounts for bank customers when purchasing insurance, including up to a 5 percent discount for one policy and a “full customer” concept offering up to a 10 percent discount for three policies and up to a 25 percent discount for five policies. Under the Financial Undertakings Regulation, firms may not make a service conditional on the customer obtaining another service or grant especially favourable terms on that condition, subject to limited exceptions where services are necessarily linked or where favourable terms are justified by cost savings from a bundled offer. The Ministry concluded that all of the discounts constitute especially favourable terms, that the threshold for “especially” is not high, and that market practice is not determinative. It also found the discounts were not sufficiently justified by cost savings, which must be specifically documented, quantifiable, and reasonably aligned with the favourable terms. Finanstilsynet expects banks and insurers to review their product packages and align offers with the Ministry’s decision, and it will follow up compliance through ongoing supervision. It also referenced an existing circular on enforcement of the product-package rules, prepared under earlier rules but still in force.

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