Introduction

The detail of regulation of funeral plans is contained in articles 59 & 60 of The Financial Services & Markets Act 2000 (Regulated Activities) Order 2001 (www.legislation.hmso.gov.uk/si/si2001/20010544.htm). The broad purpose is to help ensure that money paid by the consumer to a funeral plan provider for the purposes of providing a funeral in the future is kept safely, and is available when the time comes for delivery of the agreed funeral in accordance with the plan specification. www.legislation.hmso.gov.uk

The Funeral Planning Authority (“the Authority”) is the self-regulatory body set up by the Funeral Planning Council Limited and the National Association for Pre-Paid Funeral Plans to ensure that:

• funeral plan providers that are regulated by the Authority (“Plan Providers”) maintain high standards of professional conduct; and
• the money that customers pay to a Plan Provider for a funeral plan is safeguarded so that, when the time comes, their funeral will be provided in accordance with that plan.

The Authority does this by:

• checking that Plan Providers and funeral plan trustees are fit and proper persons and ensuring that they comply with the Authority’s Rules and Code of Practice;
• setting standards of professional conduct for Plan Providers, their staff, agents and representatives;
• ensuring that funds are protected by being held in trust, are regularly audited, regularly reviewed by an actuary and are only invested by independent fund managers authorised under the Financial Services and Markets Act 2000;
• providing arrangements for resolving disputes between Plan Providers and their customers; by a Pledge to Customers so that, in the unlikely event of a Plan Provider becoming insolvent, the other Plan Providers shall co-operate and examine ways in which the Authority might assist in arranging delivery of the funeral of the customers of the insolvent Plan Provider.