Home FCA Handbook FPCOB FPCOB 8 FPCOB 8.2 Demands and needs
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FPCOB 8.2 Demands and needs

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The sale of a funeral plan contract must always be accompanied by a demands and needs test.

Demands and needs test

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  1. (1)

    Prior to the conclusion of a funeral plan contract, a firm must identify, on the basis of information obtained from the customer and other sources where relevant, the demands and the needs of that customer.

  2. (2)

    When proposing a funeral plan contract, a firm must ensure it is consistent with the customer’s demands and needs.

  3. (3)

    A statement of the demands and needs must be communicated to the customer prior to the customer entering into a funeral plan contract.

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A firm may obtain information from the customer in a number of ways including, for example, by asking the customer questions in person or by way of a questionnaire prior to any funeral plan contract being proposed.

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FPCOB 8.2.2R(2) applies whether or not advice is given and in the same way regardless of whether that contract is sold on its own, or in connection with other goods or services.

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In determining whether a funeral plan contract is consistent with the customer’s demands and needs, a firm must consider, amongst other things:

  1. (1)

    whether any person has already made provision for the covered individual’s funeral; and

  2. (2)

    the length of the moratorium period during which the contracted funeral will not be provided.