Funeral Plans to be regulated.


Article by Phil

The Financial Conduct Authority (FCA) has finally come to a decision about the regulation of pre-paid funeral plans sales. As most people expected the FCA have decided that the sale (or more accurately the recommendation) of a funeral plan will come under the banner of “advice” which means that it will fall under the umbrella of advising on investments.

The advantage of this means that from July 2022 when the FCA takes over regulation, customers will benefit from the protection of both the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS). That’s surely a good thing isn’t it?

Well, it means that customers will only be able to get advice on a pre-paid funeral plan from a regulated financial adviser, rather than the likes of a funeral director which they do today. Unless of course funeral directors decide to seek regulation. But consumer protection will come at a cost. The FSCS has said that it will apply a levy to firms offering regulated funeral plan advice based on the percentage of their turnover that “sales” represent. That means the industry will pay and one would imagine that these costs will be passed on to the customer?

It’s no surprise that regulation is being applied to the sector. For too long there have been concerns about commission payments being made to introducers of up to £1000. The industry also lends itself by its very nature to vulnerable clients who the FCA are increasing looking to protect. Commissions will be banned under FCA regulation and advisers will need to be remunerated for their advice by charging fees.

Some market analysts believe that the number of funeral plans will falls dramatically as a result of regulation. The argument is that many clients of financial advisers already have sufficient assets to be able to cover funeral expenses, but this ignores those customers who buy plans who aren’t clients of financial advisers (which is the majority). It’s not clear how many of these will have sufficient assets to cover funeral expenses, or the arrangements in place to allow for easy access to funds at their time of need. It will soon be an adviser’s job to undertake fact finds to determine whether a funeral plan is the base course of action.

If you are looking for protection then its probably worth waiting another year to put your plans in place. On the other hand, it could be cheaper to arrange your plan now before the expected price increase come into play. We expect to continue to offer advice on funeral plans as part of our estate planning advice services which many of our clients have taken advantage of.

Estate and Inheritance Tax Planning Explained

Christina Clegg IFA explains the benefits of estate planning and Inheritance Tax Planning.

If you have any questions about Inheritance Planning please feel free to give us a call on 01282 614444 or drop us an e mail to

Awards and Accreditations

Pension Transfer Gold Standard
Financial Vulnerability Taskforce
VF 23
Vouched For 2022
Vouched For 2021
Vouched For 2020
Vouched For 2019
Vouched For 2018
Vouched For 2017
Vouched For 2016
Vouched For 2015
Vouched For 2014

Friendly, approachable and reliable. Christina always keeps appointments, returns calls, and advises to your individual needs.

Ms F

The service provided was both professional and extremely helpful, without Christina’s help we would have lost money and took a long time to obtain our pension funds.

Mr & Mrs W

Adele was very easy to like from the moment we met her. She always arrives on time, and she has changed our lives in as much as showing us how to enjoy our money more.

Mrs W