City watchdog rolls out ban on funeral provider cold calling
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The City watchdog has confirmed plans to ban cold calling by funeral plans providers as part of a wider crackdown on the industry.
The Financial Conduct Authority (FCA) today unveiled new rules that companies will have to follow from 29 July 2022.
In addition to the ban on cold calling, these include a guarantee that funeral instalment plan products will always deliver a funeral.
The watchdog will also ban commission payments to intermediaries to ensure products represent fair value, while those selling funeral plans will be subject to full checks on their fitness to operate.
The FCA said the measures will raise standards in the funeral plans market, adding that firms should start preparing now ahead of an authorisation process opening in September.
“Our new rules for the sector will drive up standards and ensure that when consumers buy a plan, they receive a product that matches their needs and expectations,” said Sheldon Mills, executive director of consumers and competition at the FCA.
“We are banning all commission payments to intermediaries to make sure products offer fair value, and, having seen the real harm cold calling can cause consumers, we’ll be banning it.
“As we take over the regulation for this market, we will be rigorously assessing firms’ fitness to operate. Firms must now plan for this new regulatory regime or prepare to leave the market in an orderly manner.”
The FCA said it was asking for feedback on the draft rules before 31 August.