Pre-paid funeral plans to become regulated
The demand for funeral plans has grown considerably in recent years with data from the Funeral Planning Authority suggesting a 200% increase in sales between 2006 and 2018.
A pre-paid funeral plan allows you to spread the cost of your funeral, so the majority of the fees are paid for in advance to protect your loved ones from financial burden and to allow you to specify your wishes.
In January 2021, the UK Government legislated to bring pre-paid funeral plans under Financial Conduct Authority regulation from late July 2022 onwards. The proposals are designed to meet several core aims including:
- Ensuring the product meets the consumers’ needs
- Plans are sold fairly
- Products represent fair value
- Ensuring services can be delivered
- Backstops should be in place should things go wrong
- Improving governance standards and oversight
The consultation period is now closed with the Financial Conduct Authority (FCA) considering the feedback and publishing the final rules later on this year. The aim is to bring a better outcome for consumers and to provide them with a level of protection they are not receiving now.
For further information, please get in touch with a member of our team on 01903 534587.