FCA bans cold calling for funeral plans as it confirms measures to raise market standards

The FCA has ruled that cold calling will be banned and new standards on advertising will be implemented to ensure plans are sold fairly.
The rules also mean that funeral instalment plan products will always deliver a funeral (after a moratorium period) as the regulator will now be banning those that don’t guarantee this.

Commission payments to intermediaries will also be banned to ensure products represent fair value and those selling funeral plans are subject to full checks on their fitness to operate to improve governance standards and oversight.

The FCA has said that the new rules will introduce high standards in the funeral plans market and require firms to ensure that plans are sold fairly, perform as expected and provide value for money.

Sheldon Mills, executive director, consumers and competition at the FCA, said: “Funeral plans should provide customers with comfort and certainty that their affairs are in order.

“Our new rules for the sector will drive up standards and ensure that when consumers buy a plan, they receive a product that matches their needs and expectations. We are banning all commission payments to intermediaries to make sure products offer fair value, and, having seen the real harm cold calling can cause consumers, we’ll be banning it.

“As we take over the regulation for this market, we will be rigorously assessing firm’s fitness to operate. Firms must now plan for this new regulatory regime or prepare to leave the market in an orderly manner.”

The FCA is asking for feedback on the draft rules by 31 August 2021.