News

23/02/2022

Dignity to provide rescue options for funeral plan companies

Dignity, one of the largest funeral plan and end-of-life service providers in the UK, has announced its commitment to offering support should companies choose not to seek authorisation under new FCA regulation or find they are unable to meet the regulator’s requirements.

This comes amidst increasing concern amongst people that currently hold a funeral plan and are uncertain of their provider’s status.

Regulation for funeral plans comes into force in July 2022.

Mike Hilliar, director of funeral planning at Dignity said: “Dignity welcomes the stronger protections and regulatory framework the FCA is introducing as it will create a more reputable and trusted product for customers.

The new rules are designed to ensure products offer fair value, to create fair competition, and to enable a stable marketplace. Importantly, it means companies that are not acting in the best interest of customers or fail to demonstrate their ability to meet the requirements, will have to exit the market.

As one of the UK’s largest providers of funeral plans, we want to reassure our existing customers that Dignity has sought the required authorisation and has been engaging regularly with the FCA.

However, we know it is not just our customers that are affected by the regulations.

As we transition to the new regime, we have been talking to the regulator about how we can minimise potentially negative consequences on customers that hold funeral plans with other firms. Specifically, those that have not submitted an application, and therefore have elected to voluntarily exit the market.

I am pleased to confirm that, in addition to assuring our own customers of the security and sanctity of their funeral plans, Dignity is aiming to ensure no family or person goes without a funeral due to the transition impacts of the new regulation. A commitment we are uniquely positioned to make as a funeral plan provider and a national network of funeral directors and crematoria.

We passionately believe funeral plans are an inherently good and important product, and we want to protect against any risk to customers but also safeguard the long-term integrity of the market.

We are considering a number of rescue options, including providing funerals at a minimal cost, taking on plan portfolios that have insufficient assets, or topping the funeral plan up from our own funds to make them viable and deliverable.

We would encourage funeral plan companies who are thinking about leaving the market, or those that do not think their trusts will make it into the new regime to talk to us to see if there is anything we can do to help.

For customers of other funeral plan companies, we would advise you to contact your provider in the first instance to understand how and if they have sought authorisation by the FCA. The regulator has also made a list publicly available on its website.”

About Dignity

Dignity was one of the first companies to develop a funeral plan product, innovating the concept in 1985, and sells around 30,000 funeral plans per year.

Dignity is the only UK provider uniquely positioned in the end-of-life sector that offers the provision of high-quality funeral plans, high standards of care and compassion at the time of need through our national funeral director network, whilst offering a peaceful place to say goodbye and remember at our 46 crematoria and cemetery locations across England and Scotland.

The benefit for the consumer being one trusted, respected and regulated funeral plan provider that will also deliver the funeral to the highest of standards at the point of need.

ENDS

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