The Financial Conduct Authority has published a list of 14 funeral plan providers who will not be authorised to sell new funeral plans once the new regulatory changes take effect from 29th July 2022.
Reiterating the forthcoming changes, the FCA stated that “only funeral plan providers that we’ve authorised, or their Appointed Representatives (intermediaries who can distribute and sell their plans) may sell new funeral plans [as of 29th July]”.
Following this date, the FCA said that the 14 firms in question “will not be authorised to sell new funeral plans” and that consumers “should not buy a new plan from them”.
Reasons for not authorising a provider comes as a result of an inability to demonstrate compliance with the FCA’s regulatory standards, which may include things like poor sales practices.
The full list is as follows:
The FCA also noted:
“If you already have a plan with one of these firms, you should get in touch with them to find out what is happening to your plan. Your options might include receiving a refund, or your plan may be transferred to another provider.
Certain firms that applied for authorisation before 1st March 2022 can continue to administer existing plans until 31st October 2022. This is to give these firms more time to wind down their business or find an authorised provider to take on their funeral plans.”
On 17th June, the FCA published a provisional list of 24 providers that are proposed to be regulated. It said that the 24 providers make up c. 87% of the market.