From July 2022, if you provide or distribute pre-paid funeral plans you’ll need to be FCA authorised. The regulator has voiced concerns about pre-paid plans and how they are sold, and has proposed a wide ranging regulatory regime.
Newly regulated firms in the funeral planning sector will have plenty to get their heads around when it comes to FCA compliance. In preparation for being FCA regulated, there are some key areas that funeral plan providers should consider:
Senior management oversight
The FCA will hold senior managers personally responsible for customer outcomes. Are you confident you can demonstrate your governance is up to scratch?
How are products sold? Could there be conflicts of interest? Are commissions appropriate?
treating customers fairly and keeping them informed is a key part of being FCA regulated, in particular when it comes to vulnerable customers. How will this change your sales process?
you’ll need a formal product governance process – how will you determine whether products are fair and offer good value?
are your plans backed with adequate trust or insurance arrangements and are sufficient funds available to meet your liabilities? You’ll also need to put in place appropriate wind down plans to protect customers in the event of failure.
you’ll need a more structured complaints handling processes, with the right for customers to escalate to the Financial Ombudsman Service.
Supporting firms new to FCA regulation
At Bovill we have spent many years helping firms who are new to FCA regulation build the systems and controls they need to become authorised, and stay authorised. We’ve worked with businesses in consumer credit, claims management, buy now pay later (BNPL), and now funeral planning.
We can help you understand what you need to do as a regulated firm and how to thrive, while staying on the right side of the regulator.
Start your journey
Get in touch using the form below and we’ll get back you as soon as possible.