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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 6.5 Payments to funeral plan intermediaries

Application

FPCOB 6.5.1R

1This section applies to a funeral plan provider.

Requirement not to offer commissions

FPCOB 6.5.2R

1A firm must not offer or pay (and must ensure that none of its associates offers or pays) any commissions, remuneration or benefit of any kind to:

  1. (1)

    another firm in connection with that firm’s business of engaging in funeral plan distribution;

  2. (2)

    another person in connection with:

    1. (a)

      that person’s business of engaging in funeral plan distribution:

      1. (i)

        for which it does not require authorisation; or

      2. (ii)

        which it carries on in breach of the general prohibition;

    2. (b)

      business of that person which would involve engaging in funeral plan distribution but for an exclusion in the Regulated Activities Order;

    3. (c)

      that person’s business of introducing customers to another person in relation to funeral plan contracts;

  3. (3)

    a person in (1) or (2) in relation to any related services; or

  4. (4)

    any third party for the benefit of a person, and in the circumstances described, in (1) to (3),

except as provided in this section.

FPCOB 6.5.3R

1FPCOB 6.5.2R does not apply to training or support which meet the requirements of FPCOB 6.4.14R and FPCOB 6.4.15R.

FPCOB 6.5.4G

1FPCOB 6.5.2R prevents a funeral plan provider from making payments, or offering benefits, to persons involved in distributing the firm’s funeral plan contracts. This includes payments made, or benefits offered, to a firm’s appointed representatives.

FPCOB 6.5.5R

1FPCOB 6.5.2R does not prevent a funeral plan provider from making payments to a person 2 merely to communicate a financial promotion.

Payments to employees

FPCOB 6.5.6G
  1. (1)

    1The rules in this section do not apply to payments made by firms to their employees in relation to sales activity.

  2. (2)

    Firms should refer to SYSC 19F and the FCA’s final guidance, ‘Risks to customers from financial incentives’ (January 2013) when considering the structure of any incentive schemes for their employees.

    [Note: see https://www.fca.org.uk/publication/finalised-guidance/fsa-fg13-01.pdf]