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Prepaid funeral plan legislation to be laid before Parliament in autumn

The Government has announced the potential timing for the next stage of the transition to Financial Conduct Authority (FCA) regulation of prepaid funeral plans.

It looks likely that legislation will be passed in Q4 2020 with FCA implementation taking a further 18 months. There are a number of steps that the Government and the FCA will take to put in place regulation:

• legislation: the Government will shortly lay a statutory instrument and explanatory memorandum before Parliament, and will publish a de minimus impact assessment when the statutory instrument is laid
• FCA rules: the FCA will consult on its proposals for regulating pre-paid funeral plan providers and intermediaries, which will involve a cost-benefit analysis. The FCA will announce its final rules once it has fully considered the responses to its consultation
• implementation period: in order to allow sufficient time for the FCA to design, consult on and implement the relevant architecture for the new
• regulatory regime, and for funeral plan providers and intermediaries to take the necessary steps (including seeking authorisation) to meet the requirements of the new regulatory framework, the new regulatory framework will come fully into force 18 months after the statutory instrument is made

The Government "recognises the important role the Funeral Planning Authority (FPA) has played in driving up standards to date, and notes that consumers may wish to consider using providers that are registered with the FPA until FCA regulation comes fully into force."

Further details can be found here.

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