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FPCOB 10.1 Application and purpose

Application

FPCOB 10.1.1 R

1This chapter applies to a funeral plan provider that enters into a funeral plan contract, under which it undertakes to secure that another person provides a funeral for the covered individual on their death.

Purpose

FPCOB 10.1.2 G

1The purpose of the requirements in this chapter is to provide certainty at the point of sale of a funeral plan contract that an appropriate funeral services provider will provide the services required under the contract at no additional cost to the customer or the covered individual’s estate.

Arrangements with the funeral services provider

FPCOB 10.1.3 R

1A firm must, within 30 days of the customer’s purchase of a funeral plan contract, make appropriate arrangements for the funeral to be carried out. The arrangements must:

  1. (1)

    be legally enforceable;

  2. (2)

    be made with a funeral services provider that is located within a reasonable distance of the covered individual’s address, unless:

    1. (a)

      it is clear from the nature of the funeral plan contract that this was not the intention of both the funeral services provider and the customer; or

    2. (b)

      the customer agrees otherwise;

  3. (3)

    identify the business name and address of the funeral services provider (including, as appropriate, the relevant branch) that will carry out the funeral; and

  4. (4)

    be such as to ensure that neither the customer nor the covered individual’s estate are required to make further payments to the funeral services provider to provide the funeral in accordance with the funeral plan contract.

FPCOB 10.1.4 R

1Following compliance with FPCOB 10.1.3R, the firm must within 2 business days provide the customer with a notification of:

  1. (1)

    the name, address and contact details of the relevant funeral services provider; and

  2. (2)

    a summary of the arrangements made with the funeral services provider,

in accordance with FPCOB 6.2 (Means of communication to customers).

FPCOB 10.1.5 R

1The firm must provide the notification in FPCOB 10.1.4R to the nominated representative at the same time as it is provided to the customer unless the circumstances in FPCOB 9.3.7R apply.

FPCOB 10.1.6 R

1The firm must regularly review the arrangements under FPCOB 10.1.3R to ensure that the funeral services provider will provide the services required under the funeral plan contract.

FPCOB 10.1.7 G

1For the purposes of FPCOB 10.1.6R, a review should take place at least every 12 months.

FPCOB 10.1.8 R

1If at any time after a firm has complied with FPCOB 10.1.3R, a firm becomes aware that the funeral services provider is unable or likely to be unable to provide the services required under the funeral plan contract, the firm must make alternative arrangements with another funeral services provider, at no additional cost to the customer or covered individual.

FPCOB 10.1.9 R

1In accordance with FPCOB 6.2, the firm must notify:

  1. (1)

    the customer; and

  2. (2)

    the nominated representative, unless the FPCOB 9.3.6R circumstances apply,

of any new arrangements made under FPCOB 10.1.8R as soon as practicable and in any event, within 2 business days of making the arrangements.

FPCOB 10.1.10 G

1A funeral plan provider should consider its arrangements in respect of subsisting funeral plans and whether those arrangements would meet the purpose of the requirements in this section, what steps it might take to change those arrangements as a result and what notifications to make to the customer and the nominated representative.

FPCOB 10.1.11 R

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FPCOB 10.2 Transfers of funeral plans

FPCOB 10.2.1 R
  1. (1)

    1This rule applies to a funeral plan provider which has assumed the undertaking under a funeral plan contract to provide, or secure the provision of, a funeral as a result of a transfer of the contract.

  2. (2)

    The firm must notify the customer and nominated representative that a transfer of the funeral plan contract has taken place within 30 days of the completion of the transfer and, where an undertaking is given in accordance with FPCOB 10.2.2R(2), a copy must be provided.

  3. (3)

    The firm must ensure that arrangements meeting the requirements of FPCOB 10.1.3R are in place within 30 days of the completion of the transfer.

  4. (4)

    If, as a result of the firm’s compliance with this rule, there are any changes to the arrangements under the contract, the firm must notify the customer and the nominated representative in compliance with FPCOB 10.1.4R and FPCOB 10.1.5R.

FPCOB 10.2.2 R
  1. (1)

    This rule applies to a funeral plan provider in circumstances described in article 59(3) to (6) of the Regulated Activities Order who:

    1. (a)

      intends to give an equivalent or substantially similar undertaking to a customer or a defined group of customers to replace an existing undertaking to provide, or secure the provision of, a funeral under a funeral plan contract between that customer and another person or funeral plan provider; and

    2. (b)

      will not otherwise assume the existing undertaking by novation, assignment or operation of law.

  2. (2)

    On or before the date notified to the FCA under article 59(3)(e)(ii) of the Regulated Activities Order, where the receiving funeral plan provider’s undertaking will replace the existing undertaking under the funeral plan contract which the customer had with the transferring firm, the receiving funeral plan provider must give a written undertaking to the customer:

    1. (a)

      to provide a funeral on equivalent or substantially similar terms to the existing undertaking; and

    2. (b)

      which provides the customer with a legally binding claim against it without the need for customer acceptance or any other action on the part of the customer.

  3. (3)

    At the same time that the written undertaking is provided to the customer under FPCOB 10.2.2R(2), the funeral plan provider must notify the FCA that the undertaking has been given and provide a copy of the undertaking.

  4. (4)

    The funeral plan provider must:

    1. (a)

      publish and maintain a copy of the written undertaking provided to the customer under FPCOB 10.2.2R(2) on its website; and

    2. (b)

      maintain appropriate records, including records of the undertaking and the customers to whom it applies,

    until such time as there are no longer any customers to whom the undertaking applies.

  5. (5)

    On request by the customer or their nominated representative, the funeral plan provider must promptly provide a further copy of the undertaking by post and/or by email.

FPCOB 10.2.3 G
  1. (1)

    The effect of FPCOB 10.2.2R is that a customer for whom a funeral plan provider becomes responsible in regulatory terms following a transfer of business is provided with a binding undertaking from that receiving provider, which will provide a civil cause of action against that firm should it be needed.

  2. (2)

    An example of where such a civil cause of action may be needed is if the funeral plan provider became insolvent and the customer or their estate wanted to make a claim to the compensation scheme.

  3. (3)

    The fact that FPCOB 10.2.2R is actionable under s.138D of FSMA at the suit of a private person means a customer to whom (in breach of that rule) a written undertaking is not made will in any event have a claim against that funeral plan provider.

FPCOB 10.2.4 G

An example of a legally binding undertaking which would fulfil the requirement at FPCOB 10.2.2R includes a deed poll executed by the funeral plan provider in favour of a customer or defined group of customers.

FPCOB 10.2.5 G

The obligation in FPCOB 10.2.2R(4)(a) does not require the receiving funeral plan provider to publish information on its website which meets the definition of personal data under the General Data Protection Regulation.