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<p>In June 2018, the CMA launched a market study into the funeral sector. The CMA
investigated two core areas in connection to the supply of a funeral: (1) how competition
between funeral directors works and transparency issues in the provision of funerals;
and (2) how competition works in the crematoria segment of the industry. In light
of the findings of the market study, the CMA launched a full market investigation
into the funeral sector. The scope of the CMA’s market investigation includes the
funeral services supplied by funeral directors arising from the redemption of funeral
plans.</p><p> </p><p>HM Treasury launched a call for evidence on the regulation of
pre-paid funeral plans in June 2018. The call for evidence has confirmed that consumer
detriment is present in the pre-paid funeral plan sector and that there is broad demand
for the sector to come under compulsory regulation. Consequently, the government intends
to bring the pre-paid funeral plan market within the remit of the Financial Conduct
Authority and is currently consulting on the proposed legislative framework to implement
this proposal.</p><p> </p><p>My officials have engaged with the CMA to ensure the
respective investigations are complementary and coherent.</p>
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