Solicitors are being asked for their views on how to stop unscrupulous sellers, following a surge in the funeral plans market.
In July, the Financial Conduct Authority (FCA) will introduce rules regarding pre-paid funeral plans, and activities relating to such plans will become regulated under the Financial Services and Markets Act 2000. The FCA is concerned about high-pressure sales tactics, high prices, poor governance of plan providers, lack of knowledge of bereaved family members about the plan, and poor financial management meaning there may not be enough funds to cover funeral costs.
Consequently, the Solicitors Regulation Authority (SRA) is exploring potential regulatory approaches. Options include direct SRA regulation or requiring firms to obtain authorisation from the FCA for this specific service.
Tracy Vegro, SRA executive director, strategy and innovation, said: ‘There have been times when these plans have not delivered what consumers expected, causing additional upset to bereaved families.’
Respond by 1 June here.
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