Detail of outcome
Secondary legislation to bring pre-paid funeral plan firms within the remit of the Financial Conduct Authority was laid before Parliament on 26 November 2020.
The government has carefully reviewed the responses to the consultation. This document sets out the governments final policy approach to amending the regulatory framework which will bring funeral plan providers within the remit of the FCA. The government will shortly lay before Parliament the necessary secondary legislation and will publish a de minimis impact assessment.
The full FCA regulatory framework will come fully into force 18 months after the legislation is made.
Following concerns about the risk of consumer detriment in the pre-paid funeral plan market, the government launched a call for evidence on the regulation of the sector in June 2018.
Responses to the call for evidence have confirmed that consumer detriment is present in the market and that there is a need for compulsory regulation of the sector.
In the light of the responses to the call for evidence, the government has maintained its position that bringing funeral plan providers within the remit of the FCA would be the most effective policy response for strengthening the regulation of the market.
This consultation document provides a summary of the responses to the call for evidence and seeks stakeholder views on proposed amendments to the legislative framework which will bring all funeral plan providers within the remit of the FCA.