Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the current level of protection for consumers purchasing a funeral plan, including protection from inappropriate sales and marketing practices.

The provision of a funeral plan is defined as a regulated activity and falls within the Financial Conduct Authority’s regulatory remit unless specific exemption criteria are met. This arrangement and these exemption criteria are set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

This legislation exempts funeral plan providers from the Financial Conduct Authority’s regulatory remit where the following financial arrangements are conducted, which are designed to ensure that the customer’s payments are secure:

1. the customer’s money is held in a trust fund, where more than half of the trustees are unconnected with the funeral plan provider. This trust must be managed by an authorised fund manager and be overseen by a Fellow of the Institute and Faculty of Actuaries; or

2. the customer’s money is placed in a life insurance policy, issued by an authorised insurer.

   HM Treasury sets the legislative framework for the regulation of financial services, including the provision of funeral plans, and continues to keep such exemptions under review to ensure the maintenance of effective prudential and conduct standards.