You are here: Home - Household Bills - News -

New rules for funeral plan providers including cold-calling ban

0
Written by:
05/07/2021
Funeral plan providers will face tough new rules from next summer, including a ban on cold-calling and an end to commission payments to intermediaries.

The Financial Conduct Authority (FCA) said it hopes the new rules will raise standards in the funeral plans market.

Funeral plan products allow people to pre-pay for their funeral, generally for a fixed cost, so relatives do not have to pick up the bill. Plans can be sold by an intermediary such as a funeral director or financial adviser, or directly by a provider.

The FCA will start regulating the funeral plans sector from 29 July 2022, the date the new rules come into force.

The sector has faced criticism in recent years for selling expensive plans that don’t always cover the cost of a funeral.

Under the new measures, firms offering funeral plan instalments will be banned from cold-calling customers and new standards on advertising will be implemented to ensure plans are sold fairly.

Intermediaries will no longer be able to receive commission for selling plans and products will always have to deliver a funeral, with the FCA banning companies that don’t guarantee this.

Sheldon Mills, executive director, consumers and competition at the FCA, said: “Funeral plans should provide customers with comfort and certainty that their affairs are in order.

“Our new rules for the sector will drive up standards and ensure that when consumers buy a plan, they receive a product that matches their needs and expectations.”

Nicholas Hill, senior advice manager at the Money and Pensions Service (MaPS) said: “We welcome the FCA’s measures to ensure that the funeral plan market is regulated, accountable and provides consumers with good value.

“These changes will come into place in 2022, so in the meantime we strongly urge people to review what they should look for in a plan before making a decision, and to be wary of any cold callers trying to sell them a plan.”

From next summer, funeral plan customers will be able to use the Financial Services Compensation Scheme or make a complaint to the Financial Ombudsman Service if things go wrong.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week