MEMA Scope · Assessment

Do funeral plan providers and sellers need FCA authorisation?

A business sells or provides funeral plans under which customers pay in advance and the provider undertakes to supply a funeral in the UK on death. Review the initial view below and answer a few questions to refine it.

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Initial viewProvisional assessment

Potential regulated activity identified

Funeral plan activity may require FCA authorisation

Providers and intermediaries selling funeral plans must be directly authorised or act as appointed representatives. Funeral plans have been FCA-regulated since 29 July 2022.

Route to consider: Direct authorisation (full permission)

Funeral Plan Provision

Why this was flagged

  • 1Entering into or carrying out a funeral plan contract as provider is a regulated activity.
  • 2Firms that sell plans on behalf of providers, such as funeral directors and will writers, are also within the regime.

Questions still to resolve

Answer to refine the view. The result updates as you go.

  • ?

    Does the customer pay before the funeral takes place, in return for you providing or arranging a funeral in the UK?

  • ?

    Do you only sell plans on behalf of another provider?

  • ?

    Will customer money be held in trust or backed by insurance until the funeral?

Regulatory basis to examine

RAO Art.59 Funeral plan contractsFuneral plan contracts (opens in a new tab)FCA: Regulating the funeral plans sectorFCA: regulating the funeral plans sector (opens in a new tab)FPCOB 1 Funeral plan conduct of businessFuneral plan conduct of business (opens in a new tab)COND 2 Threshold conditionsThreshold conditions (opens in a new tab)

Your next steps

  1. 1Confirm whether you are provider, intermediary, or neither
  2. 2Design the trust or insurance arrangements protecting customer funds
  3. 3Apply for authorisation as provider, or agree an AR arrangement with a provider
  4. 4Implement the funeral plan conduct rules and complaints handling

Where applications for this model most often fall short

  • Trust deeds or insurance arrangements for customer money
  • A sales process that avoids pressure and meets conduct rules
  • Capital and resource forecasts
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This is an initial indication from published FCA material, not an FCA determination or legal advice.

Continue with a more detailed readiness assessment

If authorisation is required, check the firm’s governance, policies, resources and application preparedness.

Will the FCA Authorise Us?

MEMA Scope gives an initial view from published FCA material. It is not legal advice or an FCA determination. Automatic matching and typed questions use AI only to choose a profile and to answer from vetted guidance; the assessment itself is never written by AI.

About this business model

A business sells or provides funeral plans under which customers pay in advance and the provider undertakes to supply a funeral in the UK on death.

Providers and intermediaries selling funeral plans must be directly authorised or act as appointed representatives. Funeral plans have been FCA-regulated since 29 July 2022.

This page gives an initial view from published FCA and legislation sources. It is not an FCA determination or legal advice. Not your business model? Describe your business in MEMA Scope.

Funeral plan provider or seller: frequently asked questions

Are funeral plans regulated by the FCA?

Yes. The FCA has regulated pre-paid funeral plans since 29 July 2022. Providers and intermediaries must be directly authorised or act as appointed representatives, unless an exempt person such as a solicitor.

Can a funeral director sell plans without authorisation?

A funeral director selling plans on behalf of a provider is treated as an intermediary and must be authorised or be an appointed representative, unless exempt.

What could change the answer for funeral plan providers and sellers?

Providers and intermediaries selling funeral plans must be directly authorised or act as appointed representatives. Funeral plans have been FCA-regulated since 29 July 2022. It can change depending on the answers to questions such as: Does the customer pay before the funeral takes place, in return for you providing or arranging a funeral in the UK? Do you only sell plans on behalf of another provider? Will customer money be held in trust or backed by insurance until the funeral?

Which FCA rules should funeral plan providers and sellers look at first?

Start with: Funeral plan contracts; FCA: regulating the funeral plans sector; Funeral plan conduct of business; Threshold conditions. This is an initial view from published FCA material, not an FCA determination.

What are the first steps for funeral plan providers and sellers?

Confirm whether you are provider, intermediary, or neither. Design the trust or insurance arrangements protecting customer funds. Apply for authorisation as provider, or agree an AR arrangement with a provider. Implement the funeral plan conduct rules and complaints handling.

Businesses we check

MEMA Scope covers 32 common business models. Each page explains whether that kind of business may need FCA authorisation, the rules to look at and the routes to consider.

Want a consultant to look at your facts?

Book a free scoping call and we will map the permissions, evidence and timeline for your firm.

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