| answer text |
<p>The provision of a funeral plan is defined as a regulated activity and falls within
the Financial Conduct Authority’s regulatory remit unless specific exemption criteria
are met. This arrangement and these exemption criteria are set out in the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001.</p><p>This legislation
exempts funeral plan providers from the Financial Conduct Authority’s regulatory remit
where the following financial arrangements are conducted, which are designed to ensure
that the customer’s payments are secure:</p><p> </p><ol><ol><li><p>the customer’s
money is held in a trust fund, where more than half of the trustees are unconnected
with the funeral plan provider. This trust must be managed by an authorised fund manager
and be overseen by a Fellow of the Institute and Faculty of Actuaries; or</p></li><li><p>the
customer’s money is placed in a life insurance policy, issued by an authorised insurer.</p><p>
</p><p>HM Treasury sets the legislative framework for the regulation of financial
services, including the provision of funeral plans, and continues to keep such exemptions
under review to ensure the maintenance of effective prudential and conduct standards.</p></li></ol></ol>
|
|
