The Financial Conduct Authority (FCA) has named the 26 funeral plan providers that it has authorised as it takes over regulation of the market from today.
These firms hold approximately 1.6 million plans, which make up 87% of the market.
The FCA’s regulation of the sector will aim to bring higher standards and boost consumer protection. New rules, which also take effect from today, include a ban on cold calling and a ban on commission payments to intermediaries, such as funeral directors.
Plan providers are required to deliver a funeral unless the customer dies within two years of taking out the plan, in which case a full refund will be offered.
Customers of authorised providers will now have access to the Financial Services Compensation Scheme (FSCS), so their money is protected if their provider fails.
And they can make a complaint to the Financial Ombudsman Service (FOS), even if the issue they are complaining about happened before July 2022 if the firm was registered with the Funeral Planning Authority (FPA) at the time the issue occurred.
Furthermore, the FCA confirmed its plans to introduce a new Consumer Duty from July 2023 will apply to funeral plan providers.
This means their customers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.
The 26 FCA authorised providers are:
- Alternative Planning Company Limited (this includes Choice and Choice funeral plans from Funeral Partners)
- Avalon (Europe) Limited
- Avalon Trustee Company Limited
- Celebration Of Life Planning Ltd
- Central England Co-Operative Limited (this includes CEC FPL and CEC Funeral Plans)
- Co-Op Funeral Plans Limited (this includes Co-op Funeral Plans and Co-op Funeralcare)
- Crystal Cremations Ltd
- Dignity Funerals Limited
- Distinct Funeral Plans Limited
- Ecclesiastical Planning Services Limited (this includes Perfect Choice Funeral Plans)
- F A Albin & Sons Limited
- Family Funerals Trust Limited
- Freeman Brothers (this includes Peter Christopher Freeman and Brigid Mary Freeman)
- Golden Charter Limited (this includes Golden Charter and localfuneral.co.uk)
- Golden Leaves Limited
- Haven Personal Funeral Plans Ltd (this includes Haven Personal Funeral Plans and Haven)
- Independent Funeral Planning Services Ltd (this includes IFPS and The IFPS)
- Low Cost Funeral Limited (this includes Affordable Funerals and Memoriafunerals.co.uk)
- M&F Funeral Services Ltd (this includes M&F Funeral Services)
- Open Prepaid Funerals Limited (this includes Open Prepaid Funeral Plans and Open Funeral Plans)
- Peace Burials Limited (this includes Peace Funerals)
- Plan With Grace Limited
- Pure Cremation Funeral Planning Ltd
- Southern Co-Operative Funerals Limited (this includes Southern Co-op and The Co-operative Funeralcare)
- The Independent Family Funeral Directors Ltd (this includes Fosters Family Funeral Directors)
- William Alty & Sons Limited
Earlier this week the regulator published a list of 14 firms covering more than 50,000 people who will not be authorised as funeral providers from 29 July.
Thirteen firms that applied before 1 March but have not been authorised have until 31 October to transfer their plans to authorised firms or refund their customers.
These plans are not covered by FCA regulation, meaning there is no protection by the FOS and FSCS until they are transferred to authorised providers.
This includes One Life Funeral Planning Ltd after the regulator rejected the firm’s application for authorisation.
It noted that One Life could not demonstrate it was able to meet or comply with the FCA’s regulatory standards with concerns including the firm having poor sales practices.
The FCA is urging consumers to not buy a funeral plan from this firm.
In June the regulator also issued a warning for customers not to buy funeral plan products from two other providers.
Emily Shepperd, executive director of authorisations at the FCA, said: “We have worked tirelessly to assess funeral plan providers, under our robust authorisation process. We are pleased that 87% of the market is now under regulation. With our new rules in place, consumers will be better protected when they need it the most.
“It is unfortunate that a number of firms chose to exit the market, leaving customers, who had sought peace of mind for their loved ones, understandably worried.
“It is a good outcome for consumers that some providers have stepped in to provide funerals for the customers of these providers at short notice. We also continue to engage with the industry while it works on a longer-term solution.”
