Pre-paid funeral plan regulation is looming - is your provider ready?

Changes to the regulation of pre-paid funeral plans mean thousands of customers are currently in limbo waiting to find out if their provider will be approved.

Any provider that does not submit an application to the Financial Conduct Authority (FCA) before 29 July will be committing a criminal offence if it sells or administers a funeral plan contract after this date.

Two providers have gone bust: Safe Hands Limited, which had 46,000 customers, and Ready4Retirement, which appointed liquidators in June.  

In June, the FCA published a list of the 24 firms it is intending to authorise, which include some of the largest providers. It said these firms hold around 87% of the existing customer plans. The regulator has also released a consumer warning about one firm. 

In July, it published a list of firms it is not intending to authorise. 

Here, Which? rounds up the firms that have submitted applications and what you need to know if you are considering taking out a plan before the end of July.

Why are funeral plans being regulated?

Funeral plans are not currently regulated, but there is a professional body for providers called the Funeral Planning Authority (FPA), which has a code of conduct that all its members must comply with.

From Friday 29 July, pre-paid funeral plans will be regulated by the FCA.

The FCA said this would ‘enhance’ consumer protection and introduce high standards so plans are sold fairly, perform as expected and provide value for money.

It also means cold calling and commission payments to intermediaries will be banned, those selling will be subject to full checks on their fitness to operate and a funeral will always be delivered after a moratorium period.

• Find out more: funeral plans explained

Find out if your provider will be approved

According to the FCA, it is intending to authorise 27 providers out of 68. 

Some 17 providers have told the FCA they will not be applying for authorisation and are planning to transfer or have completed the transfer of their existing plans to another provider.

The FCA has published a list of 14 providers it will not be authorising. 

Six providers have submitted applications and are waiting for a decision. The FCA said it is still assessing a small number of providers' applications and will give an update as soon as possible. 

Two providers have gone bust; Safe Hands and Ready4Retirement. 

The FCA said it continues to work with the industry to find longer-term solutions for customers of providers which have not applied for authorisation or have withdrawn.   

You can check out the status of your provider by viewing the table below, or by checking the FCA website.

_{Source: FCA website. Correct as of 25 July 22.}

Which firms will the FCA not be authorising?

The FCA has published a list of 14 companies it will not be authorising, which hold around more than 50,000 funeral plans combined.

Below we've included advice from the FCA about what to do if you hold one of these plans. 

None of these firms will be able to sell new plans beyond Friday, 29 July, however a select few will be able to carry out existing plans until October. 

Bristol Memorial Woodlands FP Limited

This firm did not apply for authorisation and holds around 250 plans. This firm will not be able to issue new plans or administer existing plans beyond 29 July.

The FCA said customers should have heard from the company about a refund. If you haven't, email admin@memorialwoodlands.com or call 01454 414999. 

Capital Life Funeral Planning Ltd

This firm holds around 13,000 plans and withdrew its application for authorisation. It can continue to carry out existing plans until 31 October. 

If you have a funeral plan with the firm and you've not heard from them, email update@capitallife.com.

Empathy UK Funeral Plans Ltd

This firm holds around 7,500 plans and withdrew its application for authorisation. It can carry out existing plans until 31 October. 

If you've not heard from them, email info@empathyfuneralplans.co.uk, or call 0800 035 5729.

Eternal Peace Funeral Plans Ltd

This firm holds around 100 plans and withdrew its application for authorisation. Although it reapplied, it cannot sell any plans after 29 July. It can carry out existing plans until 31 October.

If you've not heard from them, email info@eternalpeacefp.co.uk or call 0330 311 2570.

Fox Milton Co Ltd trading as Unique Funeral Plans

This firm holds around 700 plans and did not apply for authorisation. The FCA also put out a consumer warning against this firm due to 'untrue statements it has made about the safeguarding of its assets'. 

It cannot sell or administer funerals after 29 July. 

Iberian Funeral Plans

This firm is based in Spain and has 10 plans held in the UK, as a small number of its customers returned to the UK after taking out a plan. It did not apply for authorisation, but is contacting customers to provide a refund or offer alternative arrangements. 

You can buy a plan from this firm if you are based outside the UK and you wish to buy a funeral plan in Spain. 

Email info@iberianfuneralplans.com.

Mairi Urquhart & Son Ltd

This firm holds around 250 plans and withdrew its application for authorisation. 

It may not sell or carry out existing plans after 29 July.

The FCA said it understands the firm is applying to become an appointed representative. You should check the status of the FCA register before buying a plan. 

You can contact the firm by emailing info@mairiurquhartandson.com, or call  01349 880901.

Maplebrook Funeral Plans Limited

This firm holds around 500 plans and withdrew its application for authorisation. However, it can continue to carry out existing plans until 31 October. 

Email operations@maplebrookfuneralplans.co.uk, or call 0800 059 0909.

One Life Funeral Planning Ltd 

The FCA has issued a decision notice about this firm, refusing its application for authorisation. 

One Life has until 31 October to transfer its customers to another provider, or refund its existing customers. It will be able to carry out funerals for existing plan holders during this time, but cannot sell new plans. 

Email info@one.life.co.uk, or call 0333 339 9399.

Pride Planning Limited

This firm holds around 19,000 plans and withdrew its plan for authorisation. It can continue to carry out existing plans until 31 October.

Email info@prideplanning.co.uk if you have questions about your plan. 

Rest Assured Funeral Plans Limited

This firm holds around 6,000 plans and withdrew its application for authorisation. It can continue to carry out existing plans until 31 October.

Call 08000 654 514 for information about your plan. 

Seasons Personal Funeral Plans Limited

This firm holds around 200 plans, and is in the process of refunding customers. It did not apply for authorisation, and cannot or carry out existing plans after 29 July. 

You should have heard from the firm about a refund - email admin@seasonsfuneralplans.co.uk or call 01772 620805 if you haven't. 

Silver Clouds Later Life Planning Limited

This firm holds around 2,500 plans and withdrew its application for authorisation. It can still carry out existing plans until 31 October.

If you have a funeral plan with this firm, you can contact via email info@silvercloudsfp.co.uk, or call 0345 222 0271.

SJP Lichfield Limited

This firm holds around 50 plans and is transferring to Golden Leaves. It withdrew its application for authorisation, but can carry out existing plans until 31 October. 

Email sophie@jukesfuneralservices.com or call 01543 415050.

Sovereign Lifecare Ltd

The number of plans this firm holds is unknown. The FCA said it holds no information on this firm or its plans for existing customers as it's not responded to requests for information.

It did not apply for authorisation and cannot sell or carry out plans after 29 July. 

What to do if your provider is transferring your plan

If your provider has told the FCA it will transfer your plan to another provider then it should contact you.

Make sure you respond to any communication you receive, and if you have not heard anything yet, contact your provider as soon as possible.

You can find firm-specific advice on the FCA website.

The following have completed transfers: 

• Chelmsford Star Co-operative Society Limited
• Heart of England Co-operative Society Limited
• Lincolnshire Co-operative Limited
• Midcounties Co-operative Limited
• Scottish Midland Co-operative Society Limited
• Seaton Leng and Sons Ltd
• The Independent Funeral Partnership

Find out more: how much does a funeral cost?

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Funeral providers that have gone bust

Safe Hands Plans went into administration on Wednesday 23 March with all funeral plans terminated with immediate effect, affecting around 46,000 customers.

In May, Ready4Retirement ceased trading and liquidators Begbies Traynor were appointed in June, and are writing to all existing customers. 

What to do if you had a plan with Ready4Retirement

Customers who bought a plan before 24 August 2020 are not impacted by the below as their funerals are administered by a different company - The Independent Family Funeral Directors Limited. If your relative has passed and they held this type of plan, contact this company directly. 

If you had a funeral plan payable until age 90 dated after 24 August 2020, your plan is backed with an insurance policy which remains in tact. It will be transferred to another provider - Low Cost Funeral Limited. 

Your direct debits will continue to be collected as normal. Low Cost Funeral Limited issued a letter to all customers on 28 June - if you haven't been contacted, you should get in touch.

If you made a one-off payment, or a 12-month or 5 to 10-year funeral plan dated after 24 August 2020 your plan was not backed with an insurance policy and it has been terminated. 

Your direct debit payments should have stopped in May. 

A statement from Ready4Retirement states: 'As the company is in liquidation, we regret to advice that no refund can be made to you and you will therefore rank as an unsecured creditor of the company for the monies which you have paid for your plan.'

You will be offered a new discounted plan with Low Cost Funeral - but the offer is only available until 28 July. 

If your relative passes away before this date, Low Cost Funeral will provide the full cost.

If you want to discuss your options, contact Low Cost Funeral Limited on 0800 007 3661. 

For more information, you can contact the liquidators on 0141 222 2230.

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What to do if your plan is with Safe Hands

Dignity Funerals Limited has agreed to provide existing customers with funeral care arrangements for the next six months. 

In May, Dignity confirmed that it had put forward a plan to the administrators that would cap payable rates and disbursements below the market price of funerals. It said this was a 'not for profit solution' that it was providing as a 'socially responsible provider' of end-of-life services. 

If approved, Dignity will make an offer to you of a replacement funeral plan, however it's likely some additional cost will be needed. 

For those that don't want an alternative plan, you will be covered until October and receive from the administrator what is recovered from liquidation.  

All Safe Hands plan holders should register a claim with the administrators and will be contacted in due course about how to do this. If you’ve not heard anything you should call the administrator's freephone line on 0800 640 9928.

The restructuring firm appointed to handle the process, FRP Advisory, said Safe Hands does not have sufficient funds to give refunds in full as the value of the company’s assets is ‘significantly lower’ than the company's liabilities.

No further direct debits or standing orders should be collected by the company, however, you should check yours has definitely been cancelled.

If you paid for part of your plan with a credit card, you may be able to get your money back using a Section 75 claim. If you paid by debit card, you may be able to use chargeback.

Customers should remain alert to fraud and if you are called by someone claiming to be from Safe Hands, FRP Advisory or any other company involved in the administration, you should end the call and contact it directly on 0800 640 9928.

If you're a customer of Safe Hands, Which? would like to speak to you. Please email grace.witherden@which.co.uk 

• Find out more: how to claim back using Section 75

'They convinced me my money was alright'

Steve Benson from Plymouth bought two Sapphire plans from Safe Hands for himself and his wife worth £6,390.

The 73-year-old was convinced by the endorsements in the Safe Hands brochure and said he often saw its ads on television.

He told Which?: 'It seemed very safe and genuine, they never put any pressure on me to sign.

'Everything was going along smoothly until I read that funeral companies needed to be regulated by the FCA. I checked the companies registered and saw Safe Hands had withdrawn its application.'

Steve rang up Safe Hands and said he was told not to worry, but when he rang back three to four weeks later, he was told the company had entered administration.

'When I phoned them up the first time, they said the money is in a trust and you’ve got nothing to worry about. That convinced me my money was alright,' he said.

Steve is now waiting to find out how he can make a claim.

FRP Advisory said customer instalments were used to acquire investments, including equities, bonds, cash, real estate and loans.

It said the legal structure of these investments was ‘complicated’ and it needs to find out which ones can be realised for the benefit of plan holders.

A statement on the Safe Hands website from FRP Advisory states: 'Essentially, the value of the investments is not enough to meet the funeral plan obligations of the company.'

Should I take out a funeral plan before the end July?

If you want to buy a funeral plan, we advise you to wait until the 29 July deadline if possible. This is so you can compare what’s on offer from each provider once it has been authorised.

• Find out more: reasons to make a will 

This article has been updated since it was first published on 9 April 2022 and has been updated several times since then. The last update was on 27 July 2022 to include information about which firms the FCA will not be authorising.