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You are viewing the version of the document as on 2023-11-28.

FPCOB 8.4 Advised sales


FPCOB 8.4.1R

1This section applies to a firm that provides advice on investments where that advice relates to a funeral plan contract.

Suitability of advice

FPCOB 8.4.2R

1A firm must take reasonable care to ensure the suitability of its advice for any customer who is entitled to rely upon its judgement.

Suitability guidance

FPCOB 8.4.3G
  1. (1)

    1In taking reasonable care to ensure the suitability of advice on a funeral plan contract, a firm should:

    1. (a)

      establish the customer’s demands and needs by using information readily available to the firm and by obtaining further relevant information from the customer, including details of existing alternative arrangements by which the customer may reasonably fund the cost of the funeral in question. For example, this could include insurance products, investments, or cash savings, or where the customer has already made provision for the customer or covered individual’s funeral;

    2. (b)

      take reasonable care to ensure that a funeral plan is suitable for the customer’s demands and needs, taking into account its level of cover and cost, the duration of instalment payments, and relevant exclusions, limitations and conditions; and

    3. (c)

      inform the customer of any demands and needs that are not met.

Personal recommendations

FPCOB 8.4.4R
  1. (1)

    1This rule applies to a firm that provides a customer with a personal recommendation in relation to a funeral plan contract.

  2. (2)

    The personal recommendation must be provided:

    1. (a)

      on the basis of a fair and personal analysis;

    2. (b)

      in accordance with professional criteria, regarding which funeral plan contract would be adequate to meet the customer’s needs; and

    3. (c)

      unless (3) applies, on the basis of an analysis of a sufficiently large number of funeral plans available on the market2.

  3. (3)

    1If the firm’s personal recommendation will not be provided in compliance with FPCOB 8.4.4R(2)(c), the firm must disclose this fact and the scope of the analysis that will form the basis of its personal recommendation to the customer in good time before the provision of the personal recommendation.

Personalised explanation

FPCOB 8.4.5R

1Where a firm provides a personal recommendation, the firm must, in addition to the statement of demands and needs, provide the customer with a personalised explanation of why a particular funeral plan contract would best meet the customer’s demands and needs.

Means of communication

FPCOB 8.4.6R

1A firm must provide the information in this section in accordance with FPCOB 6.2 (Means of communication to customers).