FCA regulation of the pre-paid funeral plan market began on the 29th July 2022. The FCA has issued a communication which is detailed below:
‘ Last Friday, 29 July, marked the first day of regulation for the pre-paid funeral plan market. The FCA has authorised 26 providers. Together these firms hold approximately 1.6 million plans, which make up 87% of the market.
FCA regulation of funeral plans means that:
- Customers get the plan they have paid for and it meets their needs
- Customers’ money is looked after and used responsibly
- Consumers get the information they need to make an informed decision
- Those selling plans meet our rules
We’ve also introduced a ban on cold calls. The ban is clear. Unless the consumer has been in contact with the firm before, and they’d expect to receive a call from them as part of this relationship, the firm cannot call them.
For customers of plans with authorised firms, from today, they can make a complaint to the Financial Ombudsman Service, even if the issue happened before July 2022, as long as the firm was registered with the Funeral Planning Authority at the time the issue occurred.
Find out more about our regulation of funeral plan firms on our website and check which firms are authorised on the Financial Services Register. ‘
You can find a copy of this communication on this link.
Further reading
We have been reporting on this development for the funeral profession as it has developed. Here are some of our related articles. Alternatively, click the tag ‘regulation of funeral plans’ at the bottom of this blog to access more related articles.
NAFD sets out its preferred regulatory solution for funeral plan sales
Planning Ahead
Our website is packed full of useful information and guides. We have updated our Planning Ahead page, which is our guide to help people who want to set out their funeral wishes, to reflect the latest regulation.