FCA regulation for funeral plans
We very much welcome recent steps by the Financial Conduct Authority (FCA) to impose tighter regulation on the funeral plan market, a move that will result in higher standards and improved consumer protection. Changes which came into effect this summer include a ban on commission payments to intermediaries, such as funeral directors, and customers of authorised providers will now have access to the Financial Services Compensation Scheme (FSCS), so their money is protected if their provider fails.
Many people like the peace of mind that comes from having a funeral plan in place. It means some of the costs of a funeral are taken care of in advance. Funeral director fees are fixed at today’s prices and the plan generally includes an allowance for third party costs such as cremation fees, celebrant fees and doctor’s fees, although a supplement might be payable at the time of the funeral, depending on variable factors such as the location of the crematorium.
One of the advantages of setting up a funeral plan is that it provides an ideal opportunity to set down some of the things you would like to happen at your funeral. This might be something simple like a reading or favourite song, or it could be a more detailed document of wishes. Funeral wishes can, of course, be completed without a funeral plan too.
People can find it hugely comforting when they are arranging a funeral to know exactly what the person who died wanted and to be able to fulfil those wishes. Even simple guidance is helpful. Being able to fulfil funeral wishes isn’t only a practical help, it can also have a positive long term impact on grief when people know they are doing what the person who died would have wanted.
When you opt for a pre-paid funeral plan, the money you pay is securely held in trust util the time comes for it to be used to pay for a funeral. As an independent funeral director, Full Circle Funerals can support you to buy a pre-paid funeral plan and you can find out more about this service here. We can help over the phone, via video call or in person, with no obligation to use our services.