FCA regulation boosts consumer protection in the funeral plans market
In July, increased regulation of the funeral selling industry in the UK will come into force, as the sector comes under the remit of the Financial Conduct Authority (FCA).
The move will see certain sales tactics, such as cold calling, banned and will see the funds of customers who pay into a funeral plan protected under the Financial Services Compensation scheme, offering an added degree of security for consumers if their provider was to go bankrupt. Companies who wish to continue to offer funeral plans will be subject to strict tests set out by the FCA.
Funerals have long been a significant one-off cost for families. The average price for a funeral in 2021 was over £4,000. It’s feared that increased scrutiny on firms offering popular payment plans for funerals will pose a threat to potentially thousands of customers who have invested their money over a prolonged period to ensure their loved ones didn’t have to bear the burden of a costly funeral when they die.
Ryan spoke to Steve Wallis, managing director at Distinct Cremations.
Photo by Mayron Oliveira on Unsplash
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