Funeral Plans Regulation & Compliance
Since July 2022, the FCA regulates firms providing pre-paid funeral plans. We supported hundreds of businesses through FCA authorization since 2019, and we're here to help funeral plan providers navigate regulatory requirements with confidence.
Understanding Funeral Plan Regulation
Pre-paid funeral plans allow customers to pay upfront or in installments for funeral services, helping protect against rising costs and easing financial burden on families
Regulatory Timeline
Key dates in funeral plan regulation
- April 2021: FCA consultation on draft rules closed
- September 2021: Lower fee deadline for applications
- November 2021: Increased fees for late applications
- July 2022: FCA regulation commenced
- Ongoing: Full compliance required for all providers
Consumer Protection
Why the FCA now regulates funeral plans
- Protection against rising funeral costs
- Safeguarding customer payments
- Ensuring plan providers are solvent
- Clear disclosure requirements
- Suitability standards for vulnerable customers
Your Path to FCA Compliance
Three options available for funeral plan providers
Direct FCA Authorisation
Full regulatory authorization
Apply to the FCA for direct authorization as a funeral plan provider
Benefits:
- Complete control over operations
- Full FCA-authorized status
- Ability to appoint representatives
- Direct relationship with FCA
Requirements:
- Full FCA application process
- SM&CR compliance obligations
- Consumer protection standards
- Suitability and solvency requirements
- Ongoing regulatory reporting
Appointed Representative
Operate under a Principal Firm
Operate as an Appointed Representative under an FCA-authorized Principal Firm
Benefits:
- Lower regulatory burden
- Principal handles FCA relationship
- Faster route to market
- Reduced compliance costs
Requirements:
- Find suitable Principal Firm
- AR agreement requirements
- Compliance with Principal's policies
- Note: Introducer ARs have fewer requirements
- Ongoing activity reporting
Orderly Cessation
Exit the market compliantly
For firms unable or unwilling to pursue authorization
Benefits:
- Compliant exit from market
- Customer protection maintained
- Orderly wind-down process
- Regulatory obligations met
Requirements:
- Ceased activities by July 2022
- Customer plan fulfillment arranged
- Proper customer communications
- Transfer or refund processes
- FCA notification requirements
FCA Compliance Requirements
Core regulatory obligations for funeral plan providers
SM&CR Obligations
Senior Managers & Certification Regime requirements
- SMF appointments
- Certification regime
- Conduct rules
- Prescribed responsibilities
Consumer Protection
Safeguarding customer interests
- Clear plan disclosures
- Fair value standards
- Vulnerable customer support
- Complaints handling
Suitability Standards
Ensuring plans meet customer needs
- Customer needs assessment
- Product suitability checks
- Affordability considerations
- Clear recommendations
Solvency Requirements
Financial stability and security
- Capital adequacy
- Trust fund management
- Insurance arrangements
- Financial monitoring
Regulatory Reporting
Ongoing FCA reporting obligations
- Financial returns
- Data reporting
- Material changes notification
- Annual compliance attestations
Documentation Standards
Required policies and procedures
- Terms and conditions
- Customer agreements
- Compliance policies
- Record retention
How MEMA Supports Funeral Plan Providers
Comprehensive support from pre-authorization through ongoing compliance
Pre-Authorisation Services
Preparation for FCA application
Includes:
- Dedicated regulatory adviser assignment
- Comprehensive fact-finding
- Compliance risk identification
- Regulatory business plan preparation
- Compliance monitoring document creation
Application Support
Managing your FCA application
Includes:
- Complete FCA application forms
- Supporting documentation preparation
- Application submission
- FCA query management
- Liaison with FCA throughout process
Post-Authorisation Support
Ongoing compliance guidance
Includes:
- Tailored compliance documentation
- Ongoing compliance monitoring
- Regulatory advisory services
- Staff training programs
- FCA correspondence support
Experienced Funeral Plan Regulatory Support
Supporting hundreds of businesses through FCA authorisation since 2019
Need Funeral Plan Regulatory Support?
Whether you need FCA authorisation or ongoing compliance support, we're here to help
📞 Phone: 0330 133 0811
📧 Email: contact@memaconsultants.com