The FCA have issued their statement on the regulator’s take over of responsibility for the pre-paid funeral planning market.
The FCA intend to consult in spring 2021 on their plans for regulating the sector before taking responsibility in the summer of 2022. The regulator will propose rules and approach to authorising firms as well as setting out their rules to achieve good outcomes for consumers in this sector.
As we have seen with transfer of consumer credit and more recently with the transfer of responsibility of the claims management sector, in order to carry out regulated funeral plan activities, firms must be authorised by the FCA at the point at which the regulator takes responsibility for the sector. Firms that don’t intend to seek our authorisation should start planning now for how to wind down their business in an orderly way before FCA regulation comes into force.
Further information can be found here.
