Pay as you go funeral distributors might be cracked down on new guidelines from 2022
The industry is currently regulated by the Funeral Planning Authority (FPA), but companies can choose not to join their code of conduct. In 2018, the Treasury Department found that the most vulnerable were being pressured, harassed, and misled by a prepaid funeral for plan providers.
Therefore, following a consultation in spring 2021 on how best to monitor the practices, the Financial Conduct Authority (FCA) is expected to take over in 2022.
As part of the restructuring, all companies that offer prepaid funerals must be authorized to operate – or must be closed. One of the watchdog's goals is to make sure consumers get what they paid for.
The FCA also plans to ensure that customer funds are cared for and used responsibly. Currently, vendors must legally invest customers' money to pay for funerals in an insurance policy with a regulated insurer or a trust fund with independent trustees. For more information on how it works, see our Prepaid Funeral Plans Guide.