Pre-paid funeral plan providers and the Financial Services Compensation Scheme
The government is consulting on proposals to ensure that the Financial Services Compensation Scheme operates effectively if a regulated pre-paid funeral plan provider fails.
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) with effect from 29 July 2022.
It is now clear that further legislative changes are required to ensure that, from July 2022, the Financial Services Compensation Scheme (FSCS) can operate most effectively for the consumers of pre-paid funeral plan contracts if an FCA regulated provider fails.
The government therefore proposes to make a supplementary statutory instrument to ensure that the FCA can most effectively oversee an orderly wind down of a failed regulated funeral plan provider, thus protecting consumers from the risks posed by a disorderly exit from the market and mitigating the impact on FSCS levy payers.
This consultation document seeks stakeholder views on the government’s proposed amendments to the legislative framework.
This consultation will run from 5 July 2021 until 3 September 2021.
Please submit responses to: FuneralPlans@hmtreasury.gov.uk