Regulatory Alerts2021-06-29
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Regulation of funeral plans: Feedback to CP21/20 and final rules
The Financial Conduct Authority publishes final rules for the regulation of pre-paid funeral plans, which take effect on 29 July 2022. The rules require funeral plan providers to ensure payments to customers can be made from underlying trust or insurance arrangements without undue delay if the firm fails, and prohibit contractual terms that limit liability below the cost of a replacement funeral plan. Providers must obtain prior informed consent from customers for contract transfers to another provider on the same terms, and the rules allow partial refunds for downgraded plans. FSCS protection rules enabling continuity of contracts or cash compensation are made subject to corresponding Government legislation.
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