Regulatory Alerts2021-03-01
Added · Updated
Regulation of funeral plans: Feedback to CP21/4 and final rules
The document establishes final rules for the regulation of pre-paid funeral plans, bringing the sector under Financial Conduct Authority oversight from 29 July 2022. It mandates that new instalment plans guarantee funeral services without additional payment, bans commission payments to intermediaries, and requires firms to back plans with adequate trust or insurance arrangements. The rules also impose prudential capital requirements, apply the Senior Managers and Certification Regime, and grant consumers a 30-day free cancellation window plus an additional 7-day period after confirming funeral service providers. Firms must apply for authorisation from 1 September 2021, and operating without authorisation after the effective date constitutes a criminal offence.