The prepaid funeral plan industry is changing,funeral directors are setting up their very own Trusts
Updated: Jul 10, 2018
The main questions being asked by the treasury are to determine whether they will take a more active role or tighten up the current legislation as regards the RAO (restricted activity order) the feeling at present is that they probably do not want a direct involvement and are looking for alternative options.
This is a list of the questions that has been distributed by the treasury to providers and some Funeral Directors.
Question 1: Are there any other common ways to structure funeral plans, not outlined in this call for evidence?
Question 2: Are funeral plan providers always the policyholder of underlying insurance policies? Are you aware of any examples of insurance intermediation within the funeral plan sector?
Question 3: Where providers engage with third parties (e.g. funeral directors, charities, external companies), in what capacity do these third parties act and what is their relationship to the funeral plan provider? How are market participants remunerated and do any conflicts of interest arise?
Question 4: Are there any additional issues you think the government should be aware of in relation to the way in which funeral plan products are structured or sold?
Question 5: How, and through what channels, do funeral plan providers communicate with consumers for the purposes of distributing information, promoting and selling funeral plans?
Question 6: What are your views on the scale and nature of consumer detriment at the point of sale? Please provide evidence where possible.
Question 7: To what extent is cold calling present within the funeral plan sector and does this present an additional or specific risk to consumers?
Question 8: How much on average do consumers pay for funeral plans and in what circumstances would consumers pay money directly to funeral providers?
Question: 9: What protections are currently in place for consumers (for example, complaints procedures) and how effective are these protections? How can complaints and claims be brought against funeral plan providers after the death of the customer?
Question: 10: What protections are currently in place for consumers if a funeral plan provider were to have insufficient money to pay claims, and what is your view of their effectiveness?
Question 11: What is your experience of the scale and nature of consumer detriment (if any) that arises once a funeral plan has been entered into? Does this vary for different types of plans?
Question 12: What are your views on the proposal to bring the sector within the scope of the FOS and/or the FSCS? What are most common types of complaints against funeral providers?
Question 13: What types of investment strategies are being adopted by trustees who are managing trusts on behalf of funeral plan providers and what is your view on the effectiveness of these strategies in securing the short and long-term interests of plan-holders? Are trust returns withdrawn by providers for revenue raising/profit purposes and, if so, what proportion of these returns are withdrawn in this way?
Question 14: What are your views on the government’s proposal for FCAregulation of all funeral plan contracts and whether such a proposal will meet the government’s stated objectives (as set out above)? Do you consider that an alternative proposal could better meet these objectives?
Question 15: How should the regulatory framework apply in relation to funeral plans that consumers have already entered into?
Question 16: Should regulation extend beyond funeral plan providers, and apply to intermediaries engaged within the sector? Should such intermediaries become regulated entities, or should they be overseen by funeral plan providers as appointed representatives?
Question 17: What would be the overall impact on the market/your firm if all funeral plan contracts were subject to FCA regulation? Are there specific activities or businesses, such as SMEs, within the sector that would be particularly affected by strengthened regulation? What is your view of the potential costs and benefits of the government’s proposal?
Question 18: How long would the sector need to adapt to any new regulatory framework the government may seek to put in place?
We feel that all of the issues that have been mentioned above are resolved by Funeral Directors setting up their own Trusts, never has this opportunity been available to independent funeral directors before.
CPS Trust Consultancy are the only UK business that can offer a complete package to set your own Trust up within 3 months along with all marketing material, contracts, T & Cs and workflows.
The Trust complies with all current legislation surrounding Trusts and is supported by Solicitors, Actuaries, Trustees and Accountants.
Isn't it time you made the Jump?