Funeral plans come under FCA regulation July 2022

Updated: May 20

The FCA has confirmed that from 29 July 2022, it will take on responsibility for regulating and supervising the pre-paid funeral plans market.




As a result of this announcement, companies selling funeral plans will have to comply with the FCA’s regulatory regime. As an example, there are several pre-contract disclosures requiring consumers to be provided clear information before they decide whether

to purchase a funeral plan



Key rules to remember:


The FCA will require firms to, amongst other measures:

  • stop cold calling and ensure advertising plans are sold fairly

  • stop commission payments to intermediaries, such as funeral directors, to ensure products represent fair value

  • carry out full checks on those selling funeral plans, in order to improve governance standards and oversight

  • guarantee their funeral plans will always deliver a funeral unless the customer dies within 2 years of taking out the plan, in which case a full refund will be offered

  • guarantee that customers will receive a full refund if they cancel a plan within 30 days of purchase, or pay only a reasonable charge later on


Preparing for Regulation


Applications for authorisation for firms intending to remain in the market after 29 July 2022 has now opened from 1 September 2021.


If you don't intend to apply for authorisation you will need to stop selling new plans and prepare to transfer your existing books of business or wind down in an orderly way before FCA regulation starts.


Advice on next steps?


At MEMA we will cover our proprietary application framework to ensure your application can be deemed complete and ready for submission.


We will help to

  • scope out your permissions,

  • review your policies and procedures for regulatory alignment

  • assist with regulatory enquiries you will have

  • deal with various application requirements via Connect

Chat with us to find out more about how we can support you.