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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2022-07-29.

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.