You may have seen the recent news regarding the imminent regulation of the Funeral Plan Market by the Financial Conduct Authority (FCA).
We welcome the proposed regulatory changes that will stamp out poor financial conduct and sales practices, and only allow those fit and proper companies to continue selling. This is essential for the funeral plan market and will ensure clients can buy with confidence, transparency, and with a full understanding on what they are buying, with the security that their money is safe.
We, as a plan provider called Alternative Plan Company Limited (APCL) were one of the first companies to submit an application to become regulated. You can see our application status on the FCA website. The FCA has not yet announced which companies’ applications have successfully been approved, however, we are in regular contact with the FCA during this pre regulation period and are confident in our approach and application.
We would like to assure all our existing clients who have purchased a Choice Funeral Plan via our Funeral Partners network of funeral homes or an approved partner, that Choice provides exceptional security for your money with the invested funds held independently in a whole-of-life assurance policy to pay for your funeral service. For maximum security of these funds, Choice works only with UK-based life assurance companies who are authorised and regulated by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA).
Funeral Partners are the third largest provider of funeral services in the UK with over 225 funeral homes, 125 brands across England, Scotland and Northern Ireland and still growing. Our pre-paid Funeral Plan is called Choice, under the registration of the Alternative Planning Company Limited, is a registered member of the Funeral Planning Authority (FPA) which is an organisation set up by the industry to regulate providers in the UK pre-paid funeral plan industry. Its primary aim is to ensure customers get the funeral they have paid for when it is needed.
For more information on the Funeral Planning Authority visit funeralplanningauthority.co.uk
It is inevitable that some plan selling companies will not be able to meet the rules and standards stipulated by the FCA, so there will be a period of disruption in the market during the transition of those plans between providers. We would always say if you are concerned about your funeral plan please contact your plan provider.
We continue to prepare the business for operation under the new regulatory regime and will inform you as soon as there is any change in status from the FCA.
For further information please contact info@choiceplan.co.uk
Sam Kershaw
Chief Executive
Your questions answered
What is happening regarding the FCA and the Funeral Plan Sector?
In January 2021 the HM Treasury passed legislation to bring the regulation of the pre-paid funeral plans into the remit of the Financial Conduct Authority. A period of consultation has taken place and an application process was launched for firms to submit an application for authorisation to become a funeral plan provider.
On 29 July 2022, The FCA will start regulating the pre-paid funeral plans sector.
For more information www.fca.org.uk/firms/regulating-funeral-plans
Who currently oversees the pre-paid funeral plan market?
The Funeral Planning Authority oversees providers in the pre-paid funeral plan industry within the UK, ensuring that they operate in line with a strict set of rules and regulations so you can be certain that the funeral you’re paying for is in line with the terms of your plan.
For more information visit www.funeralplanningauthority.co.uk
Is my Choice Funeral Pre-Paid Plan Safe?
We would like to assure all our existing clients who have purchased a Choice Funeral Plan via our Funeral Partners network or approved partner, that Choice provides exceptional security for your money with the invested funds held independently in a whole-of-life assurance policy to pay for your funeral service. For maximum security, Choice works only with UK-based life assurance companies who are authorised and regulated by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA).
Choice, under the registration of the Alternative Planning Company Limited, is a registered member of the Funeral Planning Authority (FPA) which is an organisation set up by the industry to regulate providers in the UK pre-paid funeral plan industry. Its primary aim is to ensure customers get the funeral they have paid for, when it is needed.
For more information visit www.funeralplanningauthority.co.uk
I have moved, is my Choice pre-paid funeral plan still valid?
Funeral Partners have a network of over 225 funeral homes, 125 brands throughout England, Scotland and Northern Ireland. We also work with a wide network of other funeral homes who partner with us to ensure a suitable funeral home is available in your desired location.
When will we know that the FCA has changed the status?
As of 29th July 2022, the FCA will start regulating the pre-paid funeral plan sector. We expect to have an announcement from them before this date that we can inform you of our status changes.
What happens to a plan with a company that does not proceed with a regulation application to the FCA or is refused? Why would some pre-paid plan customers lose out?
If an existing company does not proceed with a regulation application or is refused, they will no longer be able to operate, sell or redeem plans. This will mean they will need to look for an alternative FCA regulated company to supply administration and management or alternatively refund clients. Customer refund amount may depend on whether the Plan Provider had a Capital Guarantee and what arrangement it had with its funeral service providers.
