While purchasing a prepaid funeral plan, our consumers often wonder ‘What is the FCA?’ and ‘What does it have to do with prepaid plans?’. To answer these questions, we put together this support guide, which outlines the importance of choosing an FCA-regulated provider in your search.
What is the FCA?
The Financial Conduct Authority (FCA) authorise and register financial firms and individuals. They regulate the conduct of nearly 45,000 businesses, supervise around 44,000 firms, and set standards for roughly 17,000 firms. Their regulations ensure that markets run in a way that benefits customers, staff and shareholders.
The regulation of prepaid funeral plans
Before 29th July 2022, prepaid funeral plans were unregulated by the FCA, meaning there were no rules to protect consumers purchasing prepaid plans. Beforehand, researchers identified concerns in the pre-paid funeral plan market. Providers were found to be selling poor value-for-money products, using high-pressure sales tactics, charging high commissions, not being clear on product exclusions, and managing financial trusts poorly.
What does the regulation of prepaid funeral plans involve?
- A ban on cold calling – a firm cannot initiate contact with a consumer that has not previously contacted them.
- A ban on commission payments to intermediaries, such as funeral directors
- A requirement for a funeral plan to deliver a funeral unless the customer dies within two years of taking out the plan, in which case a full refund is offered.
Ultimately, regulation of this industry means that customers receive the plans they paid for, ensures that their needs are met, and that their money is protected and used responsibly. Today, the FCA authorise 26 providers that hold approx. 1.6 million plans: 87% of the market.
Here is a list of prepaid plan providers that are FCA regulated:
- Alternative Planning Company Limited (this includes Choice and Choice funeral plans from Funeral Partners)
- Avalon (Europe) Limited
- Avalon Trustee Company Limited
- Celebration Of Life Planning Ltd
- Central England Co-Operative Limited (this includes CEC FPL and CEC Funeral Plans)
- Co-Op Funeral Plans Limited (this includes Co-op Funeral Plans and Co-op Funeralcare)
- Crystal Cremations Ltd
- Dignity Funerals Limited
- Distinct Funeral Plans Limited
- Ecclesiastical Planning Services Limited (this includes Perfect Choice Funeral Plans)
- F A Albin & Sons Limited
- Family Funerals Trust Limited
- Freeman Brothers (this includes Peter Christopher Freeman and Brigid Mary Freeman)
- Golden Charter Limited (this includes Golden Charter and localfuneral.co.uk)
- Golden Leaves Limited
- Haven Personal Funeral Plans Ltd (this includes Haven Personal Funeral Plans and Haven)
- Independent Funeral Planning Services Ltd (this includes IFPS and The IFPS)
- Low-Cost Funeral Limited (this includes Affordable Funerals and Memoriafunerals.co.uk)
- M&F Funeral Services Ltd (this includes M&F Funeral Services)
- Open Prepaid Funerals Limited (this includes Open Prepaid Funeral Plans and Open Funeral Plans)
- Peace Burials Limited (this includes Peace Funerals)
- Plan With Grace Limited
- Pure Cremation Funeral Planning Ltd
- Southern Co-Operative Funerals Limited (this includes Southern Co-op and The Co-operative Funeralcare)
- The Independent Family Funeral Directors Ltd (this includes Fosters Family Funeral Directors)
- William Alty & Sons Limited
If you are considering purchasing a prepaid funeral plan from a funeral director, you can search their name on the FCA website, to check if they are regulated.
For more information, visit the FCA website.
More support guides you may like:
What is a Prepaid Funeral Plan?
How Do I Choose a Prepaid Funeral Provider?
How to Find a Loved One’s Prepaid Funeral Plan
Understanding Funeral Plans and Terminal Illness