FCA writes to funeral plan providers

The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for regulation:

• Firms should submit a high-quality, complete application for FCA authorisation as soon as possible. They cannot expect FCA to determine their applications in time if they are submitted after January 2022, or before the end of January 2022 but are incomplete;
• Firms who decide not to apply for authorisation need to confirm this by emailing the FCA. They also need a clear plan to wind down their existing pre-paid funeral plan business before 29 July 2022;
• Firms who are refused authorisation or who withdraw their application are also expected to stop the sale and administration of funeral plans and provide a clear wind-down plan before 29 July 2022; and
• Firms should communicate fairly and transparently with existing customers at all stages of the process and in any scenario.

The FCA is maintaining a central record of all funeral plan providers, which it will use to confirm whether firms have applied for authorisation and the status of their applications. It will publish further communications, including warnings and notices to consumers (as necessary), about specific firms that do not obtain authorisation.