FPCOB 9.2 Providing product information to customers: general

Ensuring customers can make an informed decision: the appropriate information rule

FPCOB 9.2.1R
  1. (1)

    1A firm must ensure that a customer is given appropriate information about a funeral plan contract in good time before the conclusion of the contract and at relevant times thereafter, in a comprehensible form so that the customer can make an informed decision about the arrangements proposed.

  2. (2)

    The information must be provided to the customer:

    1. (a)

      whether or not a personal recommendation is given; and

    2. (b)

      irrespective of whether a funeral plan is offered as part of a package with another product or service.

  3. (3)

    The information to be provided under this rule must include the full terms of the funeral plan contract.

FPCOB 9.2.2G

1The appropriate information rule applies:

  1. (1)

    at all of the different stages of a contract and includes pre-conclusion and post-conclusion information, and also when post-contractual changes are proposed;

  2. (2)

    in the same way to any funeral plan, regardless of whether that funeral plan is sold on its own, or in connection with other goods or services; and

  3. (3)

    to the price of the funeral plan.

What level of information needs to be provided?

FPCOB 9.2.3G

1The level of information required will vary according to matters such as:

  1. (1)

    the knowledge, experience and ability of a typical customer for the funeral plan;

  2. (2)

    the terms of the funeral plan contract, including its main benefits, exclusions, limitations, conditions and its duration;

  3. (3)

    whether the funeral plan is bought in connection with another product or service; and

  4. (4)

    distance communication information requirements (for example, under the distance communication rules, less information can be given during certain telephone sales than in a sale made purely by written correspondence (see FPCOB 5.1.14R (exception: telephone calls)).

FPCOB 9.2.4G

1Cancellation rights do not affect what information it is appropriate to give to a customer to enable them to make an informed purchasing decision.

Oral sales: ensuring customers can make an informed decision

FPCOB 9.2.5R
  1. (1)

    1If a firm provides information orally during a sales dialogue with a customer on a main characteristic of a funeral plan, it must do so for all the funeral plan’s main characteristics.

  2. (2)

    A firm must take reasonable steps to ensure that the information provided orally is sufficient to enable the customer to take an informed decision on the basis of that information, without overloading the customer or obscuring other parts of the information.

FPCOB 9.2.6G
  1. (1)

    1A funeral plan’s main characteristics include its significant benefits, its significant exclusions and limitations, its duration (if applicable) and price information.

  2. (2)

    A significant exclusion or limitation is one that would tend to affect the decision of customers generally to buy a funeral plan. In determining what exclusions or limitations are significant, a firm should particularly consider the exclusions or limitations that relate to the significant features and benefits of a funeral plan and factors which may have an adverse effect on the services provided under it. Another type of significant limitation might be that the contract only operates through certain means of communication, e.g. telephone or internet.

Funeral plan summary

FPCOB 9.2.7R

1A firm must provide a customer with a funeral plan summary in good time before the conclusion of a funeral plan contract.

FPCOB 9.2.8G
  1. (1)

    1The funeral plan summary should be provided on paper or in another durable medium.

  2. (2)

    In the case of telephone selling, a firm may provide the funeral plan summary in accordance with the distance communication timing requirements and provide the funeral plan summary to the customer immediately after the conclusion of the funeral plan contract.

  3. (3)

    The funeral plan summary should be provided on paper or in another durable medium and otherwise in accordance with FPCOB 6.2 (Means of communication to customers).

Responsibility for producing and providing the funeral plan summary as between funeral plan providers and funeral plan intermediaries

FPCOB 9.2.9R
  1. (1)

    1A funeral plan provider is responsible for designing and producing a funeral plan summary.

  2. (2)

    A funeral plan intermediary is responsible for providing a funeral plan summary to a customer.

  3. (3)

    If there is no funeral plan intermediary, the funeral plan provider is responsible for providing the funeral plan summary to a customer.

Funeral plan contracts: importance of reading documentation

FPCOB 9.2.10R
  1. (1)

    1A firm must draw a customer’s attention to the importance of reading the funeral plan contract documentation before the end of the cancellation period to check that the funeral plan is suitable for the customer.

  2. (2)

    This must be done orally if a firm provides information orally on any main characteristic of a funeral plan but otherwise in writing.

Price information: general

FPCOB 9.2.11R

1A firm must provide price information in a way calculated to enable the customer to relate it to a regular budget.

FPCOB 9.2.12G

1Price information should include at least the total price (or where it cannot be indicated, the basis for calculating it) of the funeral plan and, where relevant:

  1. (1)

    for instalment payment funeral plans with a payment schedule greater than 12 months, whether the payments may increase and if so, the amount of the increase (or where this cannot be indicated, the basis for calculating it) and the timing of the increase;

  2. (2)

    other fees and taxes payable and potentially payable by the customer through the firm; and

  3. (3)

    a statement identifying separately the possibility of any taxes not payable through the firm.

FPCOB 9.2.13R

1Where a firm offers customers the option to pay for a funeral plan by instalments, it must clearly communicate the total cost of the instalment payment option.

FPCOB 9.2.14R

1If a firm has more than one payment option available for its funeral plans and does not present all the payment options to customers, it must also make it clear to customers that other payment options are available.

FPCOB 9.2.15G

1For the purposes of the fair, clear and not misleading rule:

  1. (1)

    the total price of the instalment payment option should be given equal prominence and emphasis as the price of the single payment option; and

  2. (2)

    the total price of the instalment payment option should not be presented in a way that gives the impression that it is equivalent to the price of the single payment option (unless this is actually the case).

FPCOB 9.2.16G

1Price information should be given in writing or another durable medium in good time before conclusion of the contract. This is in addition to any requirement or decision to provide the information orally. In the case of a distance contract concluded over the telephone, it may be provided in writing or another durable medium no later than immediately after conclusion.