The Financial Conduct Authority (FCA) has published a list of 14 firms covering more than 50,000 people who will not be authorised as funeral providers from 29 July.
From that date only funeral plan providers the regulator has authorised or their appointed representatives (intermediaries who can distribute and sell their plans) may sell new funeral plans.
Last month the regulator said of the 64 funeral plan providers in the market, only 24 had been approved for authorisation but these firms held approximately 87% of existing customer plans. It has now taken the total approved to 50.
The largest firm not being authorised is Pride Planning which has approximately 19,000 plans in force, followed by Capital Life Funeral Planning which has 13,000 customers.
Empathy UK Funeral Plans with 7,500 policies and Rest Assured Funeral Plans which has 6,000 plans in place were also significant providers affected.
The 14 firms will not be authorised to sell new funeral plans after 29 July and the FCA advises consumers should not buy a new plan from them.
They are:
Bristol Memorial Woodlands FP
Capital Life Funeral Planning Ltd
Empathy UK Funeral Plans Ltd
Eternal Peace Funeral Plans Ltd
Fox Milton and Co Ltd, trading as Unique Funeral Plans
Iberian Funeral Plans
Mairi Urquhart & Son Ltd
Maplebrook Funeral Plans Limited
Pride Planning Limited
Rest Assured Funeral Plans Limited
Seasons Personal Funeral Plans limited
Silver Clouds Later Life Planning Limited
SJP Lichfield Limited
Sovereign Lifecare
Consumers who already have a plan with one of these firms, are advised to get in touch with them to find out what is happening to their plan. Options might include receiving a refund, or their plan may be transferred to another provider.
Certain firms that applied for authorisation before 1 March 2022 can continue to administer existing plans until 31 October 2022. The regulator said this is to enable these firms more time to wind down their business or find an authorised provider to take on their funeral plans.