An estimated 200,000 funeral plans are “at risk” as the City regulator clamps down on the pre-paid market, the chairman of a parliamentary group has warned in a letter to the Treasury.
The Financial Conduct Authority yesterday announced that it intended to authorise 24 firms ahead of regulation from July 29, meaning almost two thirds have not yet secured approval.
The FCA said that the Co-op and Dignity, the large London-listed operator, were among the companies it intends to authorise. Combined, the authorised firms hold around 87 per cent of existing pre-paid funeral plans, which offer customers, particularly the less well-off, the ability to stagger payments for funerals in advance, saving families the expense of a send-off when a loved one dies.
The Financial Conduct Authority’s new regulation begins on July 29
ALAMY
Unauthorised firms
