Broker Sfam placed into judicial liquidation

The Paris Commercial Court placed Indexia Group subsidiary Sfam in compulsory liquidation on 24 April 2024. This decision came in the wake of proceedings initiated by the Union de recouvrement des cotisations de sécurité sociale et d'allocations familiales (Organization for the Collection of Social Security and Family Benefit Contributions) (Urssaf Rhône-Alpes), which claimed that the company had unpaid receivables worth 11.76 million EUR (12.7 million USD).

Since 2016, Sfam, a broker specializing in affinity insurance for mobile phones, has been facing several complaints filed by its customers, including FNAC, for its commercial practices described as misleading.

In June 2019, the Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) imposed a penalty of 10 million EUR (10.8 million USD) on the company. According to the investigation, hundreds of customers were unknowingly being overcharged for underwriting insurance policies.

On April 27, 2023, the French Prudential Supervision and Resolution Authority (ACPR) took action against Sfam, imposing a temporary ban on the distribution of all insurance contracts. Following this decision, insurers MMA (Covéa) and Axeria IARD terminated their partnership with the broker. This has left the latter unable to market any insurance products.

Sadri Fegaier, founder of Indexia, and other entities of the French group are also facing legal action.