From 29 July - Funeral plans

Funeral plans will become FSCS protected from 29 July 2022. Find out what this means for you.

What is a funeral plan?

Pre-paid funeral plans are products that allow you to pre-arrange and pre-pay for your funeral with a provider, generally for a fixed cost. They can be sold by a third-party intermediary (e.g funeral directors and will writers), or directly by a funeral plan provider.

FCA regulation of funeral plans

From 29 July 2022, the Financial Conduct Authority (FCA) will start regulating firms and intermediaries that provide and arrange pre-paid funeral plans.

So, any firms that undertake any activities in relation to funeral plans and wish to continue doing so after 29 July 2022 will need to become FCA-authorised. Any intermediaries that wish to do the same will need to become an appointed representative of an authorised firm.

FSCS protection of funeral plans

Any funeral plan providers that are FCA authorised from 29 July 2022 will also become FSCS protected.

This will mean if you have a funeral plan with an FCA-authorised provider that goes out of business after 29 July 2022, you may be able to claim compensation with FSCS.  This includes funeral plans bought before the FCA regulation date, as long as the provider is approved for FCA authorisation from 29 July.

From 29 July 2022, you may also be able to claim compensation for certain activities carried out by a funeral plan provider or their intermediaries. Examples include advice to take out a plan or how a funeral plan contract is carried out.

Funeral plan providers: authorisation status

If you already have a funeral plan but aren't sure if your provider is planning to become FCA authorised (and therefore FSCS protected), find out by checking the FCA’s authorisation status list of funeral plan providers. This list will be updated regularly.

If your funeral plan provider has said it will not be applying for authorisation, or won't be approved for authorisation in time for 29 July 2022, it should contact you with the next steps for your plan.

Any providers that are not authorised by 29 July 2022 will have to stop trading in relation to funeral plans before FCA regulation takes effect. From 29 July 2022, it will be a criminal offence for plan providers to carry out funeral plan contracts without authorisation.

If you don’t receive an update, you should contact your provider directly.

Buying a funeral plan before 29 July 2022

Considering buying a funeral plan before FCA regulation comes in? Visit the FCA’s website for guidance on things to consider before you buy.

Funeral plans before FCA regulation

Until 29 July 2022, firms involved in pre-paid funeral plans don't have to be regulated by the FCA.

This means you also won't have protection from FSCS if your provider or intermediary goes out of business before 29 July 2022.

 

The Funeral Planning Authority (FPA) is the current industry-established regulator of funeral plan providers. It will continue to regulate the market until the FCA takes over the sector on 29 July 2022.

If you have a complaint about your funeral plan provider that is currently trading before 29 July, you may be able to complain to the FPA if your provider is registered with them.

After 29 July 2022, if you have a complaint against a funeral plan provider or intermediary that is currently trading, you'll be able to refer it to the Financial Ombudsman Service.

You can find more information about funeral plans and over 50s plans via the MoneyHelper website.