FPCOB 15.5 Core capital resources requirement for funeral plan provision activities

FPCOB 15.5.1R

1Subject to FPCOB 15.7.1R, for a firm with a Part 4A permission to carry on regulated funeral plan provision activities to which FPCOB 15.6.1R does not apply, the core capital resources requirement is the higher of:

  1. (1)

    £20,000;

  2. (2)

    2.5% of the firm’s annual income; or

  3. (3)

    the sum of:

    1. (a)

      the number of undrawn funeral plan contracts backed by trust arrangements, multiplied by the median of the amounts that would be payable to the firm under each trust arrangement if a funeral were required on the day following the end of the firm’s previous period for submitting its funeral plan financials return in accordance with SUP 16.12, multiplied by 0.5%; and

    2. (b)

      the number of undrawn funeral plan contracts backed by a whole of life insurance policy, multiplied by the median of the amounts payable to the firm under each whole of life insurance policy if a funeral were required on the day following the end of the firm’s previous period for submitting its Funeral plan financials return in accordance with SUP 16.12, multiplied by 0.5%.

FPCOB 15.5.2R

1The calculation in FPCOB 15.5.1R(3) does not include any undrawn legacy funeral plan contracts held by the firm.