FCA launches pre-paid funeral plans consultation
What firms must do to prepare
All firms in this sector now need to consider how FCA regulation impacts their business and begin to make the necessary preparations.
Over the coming months, the FCA will be providing a range of help and guidance to assist firms in preparing applications and getting ready to be regulated by the FCA.
They will need to:
- apply directly to the FCA for authorisation from September 2021 or, if appropriate, submit notification to become an Appointed Representative
- apply as soon as possible after the application gateway opens in September 2021 – applications made after 1 November 2021 may incur a higher application fee
- ensure they meet our standards to be authorised and, once authorised, follow our rules
- pay an application fee and then annual fees, based on turnover
Those funeral plan providers that cannot meet the FCA’s standards, set out in this paper, or those which are not authorised before July 2022, are expected to cease trading in relation to funeral plans in an orderly way. This should take place before FCA regulation takes effect. Carrying on regulated business without authorisation after rules take effect is a criminal offence.
The FCA anticipates that the Funeral Planning Authority will continue to regulate providers of prepaid funeral plans registered with them, until FCA regulation begins in July 2022.
The FCA is asking for feedback on the draft rules and is asking for responses by 13 April 2021.