Rescue and Closure Options for Pre-Paid Funeral Plan Companies

Before the pre-paid funeral plans market was not regulated, so getting in was easy. But since the Financial Conduct Authority (FCA) rules started, funeral plan providers have had to rethink what they do.

In certain situations, this entails deciding to permanently shut down the company. If you require guidance on closing your prepaid funeral plan business and placing it into liquidation, it’s advisable to consult a licensed insolvency practitioner first.

How can you close your funeral plan company via liquidation? 

These alterations enhance consumer protection and aim to elevate standards throughout the industry. However, they also imply that certain firms may no longer sustain their operations. 

If you function as a prepaid funeral plan provider or intermediary (such as funeral directors) and have not sought FCA authorisation or had your application declined, you are prohibited from trading. Consequently, you must explore methods to cease your operations.

If you’re wondering about the future of your funeral plans company after the introduction of FCA regulations and are thinking about closing the business, it’s crucial to promptly reach out to a licensed insolvency practitioner for urgent assistance.

An insolvency practitioner can guide you through the different solutions for closing your prepaid funeral plans business and explain the implications for your company, employees, and existing plan holders. Whether your business is solvent or insolvent, we offer advice and work with you to wind down the company in an organised manner.

What are the FCA rules and regulations for the pre-paid funeral plan providers?

All funeral plan providers and intermediaries now require the necessary FCA authorisation to continue selling and offering funeral plans. Those who were not authorised (or exempt from the regulations) by 29 July 2022 were legally obligated to cease selling and administering funeral plans.

FCA regulation entails higher standards concerning the governance and financial resilience of the company, along with additional rules regarding marketing (including a prohibition on cold calling) and a ban on commission payments to intermediaries.

Customers now have access to the Ombudsman, enabling them to refer complaints if no resolution is reached. Additionally, plan holders are protected by the Financial Services Compensation Scheme (FSCS) in case their provider goes into liquidation or ceases to trade.

For expert assistance and guidance on closing down and liquidating your prepaid funeral plans company, regardless of whether you have FCA authorisation, contact Vanguard Insolvency today. We offer a free, no-obligation consultation with a licensed insolvency practitioner in your area.