Funeral Plan Regulation
Funeral Pre-Planning faces new regulations

The funeral profession is set for another round of long awaited and welcome regulations which this time relate to the sale of pre-paid funeral plans which become regulated from 29th July 2022.
Funeral plans have changed a great deal over the years. Historically, a small life policy may have been in place – or perhaps even a biscuit tin behind the mantelpiece with funds for the inevitable funeral.
Early pre-payment options may have involved a joint bank account with the plan holder and funeral director, or even funds held directly in the funeral directors account. Such set ups clearly offered no protection for client funds and were entirely reliant on trust between the client and funeral director.
More recently, reputable funeral plan providers (such as Golden Charter) have been voluntarily overseen by the Funeral Planning Authority (FPA) who would have offered some level of direction as to requirements of Trust Funds, and may have provided a level of fall back in the event that a member firm failed.
However, as was seen earlier this year, even members of the FPA can unfortunately collapse and prove to be less than a safe pair of hands.
So, as from 29th July, 2022, ALL funeral plan companies will be under the strict regulation of the Financial Conduct Authority (FCA) who will govern the activities of funeral plan companies and their individual sellers. Each individual seller (such as our staff) of funeral plans will also need to be formally trained and authorised by the FCA. As individual sellers, we will require to fulfil annual Continuing Professional Development (CPD).
Ultimately the aim of this new regulation is to ensure firstly that plans are sold fairly and properly allowing potential plan holders to make their own informed decisions without any pressure and after being given all necessary information about the product they are considering. Secondly, the security of funds paid towards a funeral plan is essential, and the new regulations will ensure that all funds are held securely in order to meet future funeral costs. Regulation also allows a clear mechanism to deal with any companies or individuals who are found to fall short of the required standards.
It should be noted, that for the many people who already have a funeral plan, existing plans will also fall under the new regulations. Any firm unable or unwilling to comply with the new regulations will have to refund any plan holders or make an arrangement for its plans to be transferred to a regulated provider. Several smaller plan providers have already had to do this. Unless your funeral plan company contacts you, you have nothing to do.
At Mark Shaw Funeral Services, we now have 6 members of staff who have been passed to discuss or sell funeral plans. While there is a lot for us to learn, it was reassuring to find that we were already covering much of what the regulations require in terms of transparency and ensuring our clients are fully informed before they make any decision about purchasing a funeral plan.
Since the start of our business, we have worked closely with Golden Charter, one of the longest standing funeral plan companies serving independent funeral directors. Fortunately, Golden Charter have helped steer us through this process, and what is undoubtedly yet another change faced within our profession following last years CMA Pricing Regulations and all that we faced as a profession during the COVID lockdowns.
The main difference people will notice when arranging a funeral plan under the new regulations will be slightly more formality and specific agreement to terms, much as are covered with other financial products. We will however continue to offer an entirely individual approach to pre-arranging funerals giving you as much flexibility as you required. There will be no changes to our cost structure either.
For more details about our pre-paid funeral plans, please contact us by e-mail or telephone at any time.