News

17/06/2022

FCA REGULATION OF THE FUNERAL PLANS SECTOR OUTCOME

Dignity plc, the UK's leading provider of end-of-life services and one of the largest providers of funeral plans, is pleased to announce that the FCA has confirmed that it is "intending to authorise" Dignity Funerals Limited as a regulated entity under the new regulatory regime for pre-paid funeral plans.

From 29th July 2022, funeral plan providers in the UK must be regulated by the FCA to continue to sell or carry out funeral plans. The statutory oversight follows several years of campaigns, Government calls for evidence, and formal consultation with the funeral industry.

The regulations set out by the FCA are designed to make products work better for consumers, to create competition, and enable a stable marketplace. Once the regulations come into force in July, companies that want to continue to sell or carry out funeral plans must be authorised by the FCA and conform to its rules, or risk committing a criminal offence.

Dignity has engaged with the FCA throughout its process and supports the regulatory framework implemented across the market.

Kate Davidson, Chief Executive Officer, said: "We are delighted to announce that Dignity has received confirmation that the FCA is "intending to authorise" our company under the new regime. We have long called for regulation of the funeral plan sector. We believe it will deliver greater transparency and protections for customers, whilst also paving the way for greater confidence in funeral plans as a good product that helps people plan and pay for their funeral in advance.

There has been a huge strategic and operational effort within Dignity to deliver the comprehensive evidence required by the FCA for us to achieve this authorisation. The regulation impacts almost every corner of our business; from compliance and governance, an enhanced focus on customer vulnerability and consumer redress processes, training and people development, as well as a new approach to how we market and sell our product.

We are proud of what we have achieved to date and recognise the responsibility Dignity has as a market leader to ensure we not only continue to deliver the high standards expected by the regulator, but strive to exceed them. This includes an exciting and innovative new proposition that we will be launching over the coming months that will deliver a flexible, competitively priced and modernised customer experience.

Today's announcement will provide Dignity’s own customers with reassurance that they hold a plan with a trusted and reputable provider, backed by a secure and well-managed trust fund. We recognise that this isn’t the case for customers of those providers that have failed to meet the requirements set out by the FCA or have elected to exit the market. We stand by our commitment to help customers of other plan providers where we can, and as we have with the customers of Safe Hands, we will engage with those firms on a case-by-case basis.

I would like to thank everyone who has helped secure this result, in particular, our colleagues, stakeholders and shareholders for their continued support. We look forward to providing a further update after the 29th July when FCA regulation commences."

ENDS

NOTES TO EDITORS

Dignity Funeral Limited, part of the Dignity plc group, will be the regulated entity for the sale and administration of funeral plans. The customers of Simplicity Cremations and AgeCo plans will also be covered by this regulated entity.

For more information

Media contacts

Back to Article index