PROD 7.4 Product governance requirements for subsisting funeral plans

Product governance arrangements

PROD 7.4.1R

1This section applies to a funeral plan provider in relation to a subsisting funeral plan.

PROD 7.4.2R

1A funeral plan provider must ensure that, in relation to its subsisting funeral plans, there are adequate product governance arrangements in place, containing appropriate measures and procedures, to ensure a subsisting funeral plan is carried out in way that complies with the firm’s regulatory obligations under the FCA Handbook.

Monitoring and review of funeral plan products

PROD 7.4.3R

1A firm must:

  1. (1)

    regularly review its subsisting funeral plans, taking into account any event that could cause material harm to the customers; and

  2. (2)

    ensure the review process in (1), provides that appropriate actions be taken for the mitigation and any potential remediation of the harm to existing customers.

Monitoring and review of funeral plan products: minimum review period

PROD 7.4.4R
  1. (1)

    1A firm must undertake the regular review at least every 12 months.

  2. (2)

    When determining the appropriate interval for review of a funeral plan product, a firm must take into account:

    1. (a)

      the nature of the customer base, including whether there are significant numbers of vulnerable customers;

    2. (b)

      any indicators of customer harm potentially emerging from the performance of the product; and

    3. (c)

      any relevant external factors such as changes to the applicable legal rules, technological developments, or changes to the market situation.

Product monitoring and review: remedial and mitigating action

PROD 7.4.5R
  1. (1)

    A firm must identify during the lifetime of a subsisting funeral plan any circumstances related to it that may adversely affect a customer.

  2. (2)

    Where a firm identifies an event that may adversely affect a customer holding the funeral plan contract, the firm must:

    1. (a)

      take appropriate action to mitigate the situation and prevent further occurrences of the detrimental event; and

    2. (b)

      promptly inform concerned customers about the remedial action taken.