1The rules in this chapter mitigate the risk of loss to customers on the insolvency of a firm engaged in funeral plan distribution. Such a firm cannot receive or handle payments for a funeral plan contract except in some limited circumstances by cheque or 2in the form of cash and can only receive or handle a cash payment if that contract will be effective from the moment of receipt.
the payment is:
received as agent for the funeral plan provider;
made in cash;
1The effect of FPCOB 12.2.1R is that a firm engaging in funeral plan distribution can only accept payment for a funeral plan contract if the payment is made by cheque payable to the funeral plan provider or 2in cash and, if cash, 2 the funeral plan provider will be bound by that contract from the moment that any cash 2payment is received by the firm.
prohibit such payments other than by cheque or 2in cash and:
1A firm which appoints an appointed representative to distribute funeral plan contracts should prohibit the representative from accepting payments which are payable to a funeral plan provider under a funeral plan contract (other than an FP distribution charge) unless the conditions at FPCOB 12.2.1R are satisfied.
1Where a funeral plan provider appoints another firm to undertake funeral plan distribution in relation to its funeral plan contracts and that firm has an appointed representative who it permits to accept cash payment for that contract, FPCOB 12.2.1(1)(d)2would be satisfied where the appointed representative receives the cash payment as sub-agent for the funeral plan provider and the contracts which underpin the arrangements ensure this (including the contract between the firm and its representative).