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<p>In January 2021 the government legislated to bring all pre-paid funeral plan providers
and intermediaries within the Financial Conduct Authority’s regulatory remit.</p><p>
</p><p>The FCA has extensive experience of both conduct and prudential regulation.
As part of its regulation of the sector, the FCA have introduced requirements that
ensure that funeral plan providers have sufficient funds to fulfil the funeral plan
contracts they have entered into.</p><p> </p><p>This includes rules that require funeral
plan providers to:</p><p> </p><ul><li>place sufficient funds to provide any agreed
upon funeral in a trust or insurance arrangements;</li></ul><p> </p><ul><li>have systems
and controls in place to ensure the adequacy of those trust and insurance arrangements
and to ensure that pricing does not lead to insufficient sums being available to provide
the agreed upon funeral; and</li></ul><p> </p><ul><li>consider the risk of inflation
and volatility of trust assets when assessing the sums needed to provide for the funeral.</li></ul>
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