A Nottinghamshire family funeral firm hopes a move to bring pre-paid plans under stricter financial control this week will give people the confidence to put money aside to pay for their own funerals.
Gillotts Funeral Directors described the decision to grant the Financial Conduct Authority the right to regulate the plans as a positive step forward after years where savers had no independent body to ensure their plans would pay out when the time comes.
Pre-paid funeral plans allow people to save money to pay for their own send-offs to ensure that they get the service and arrangements they wish without their families having to worry about whether the funds are available at the time.
The move, which comes into effect on Friday, means that any company which provides a pre-paid plan must agree to be regulated by the FCA in order for them to continue to administer them.
Pre-paid funeral plans will be regulated from Friday onwards in a move which Nottinghamshire firm Gillotts Funeral Directors says will give families precious peace of mind.
It also means that families will have access to the Financial Services Compensation Scheme and so can claim their money back if their plan provider goes out of business. Currently, savers simply lose their money.
The FCA has named 24 different plans it intends to regulate, covering 87% of the market. All other providers must either stop administering their own plan or have taken steps to transfer any existing plans to a regulated provider or refund customers accordingly.
Gillotts, which operates branches on Eastwood, Kimberley, Stapleford, Selston and across the border in Heanor, offers pre-paid plans through Ecclesiastical Planning Services, which has been named among the companies on the list.
Anthony Topley, a partner in Gillotts Funeral Directors, says there have been many horror stories of families having been mis-sold plans, only to find out when it was time to arrange the funeral.
Anthony Topley, a partner in Gillotts Funeral Directors, said: “We have sold pre-paid funeral plans on behalf of Ecclesiastical for many years now in the full knowledge that they are a reputable company who families can rely on.
“However, every year we hear horror stories from elsewhere in the industry where plans have been mis-sold, sometimes using high-pressure tactics, with bereaved families only finding out when it’s time to arrange the funeral, or when they found out through the media that their plan provider was not going to receive authorisation.
“That’s an appalling situation for anyone to encounter, which is why next Friday is so important for helping us raise awareness that pre-paid plans are trustworthy investments and we hope it encourages more people to start their own funeral plan.”
Anybody who is unsure about whether their plan is covered by the FCA ruling should visit https://www.fca.org.uk/consumers/funeral-plans/providers-list
