29 Jul 2022 07:46
IMMEDIATE RELEASE | 29 July 2022 |
Dignity plc
FCA REGULATION OF THE FUNERAL PLANS SECTOR FINAL OUTCOME
Dignity authorised under new FCA regulation for funeral plans
Dignity Funerals Limited, part of Dignity plc, the UK's leading provider of funeral plans and end of life services, confirms it has achieved authorisation by the Financial Conduct Authority (FCA) under a new rule book for pre-paid funeral plans, which comes into effect today, 29th July 2022.
Funeral plan providers in the UK must now be regulated by the FCA to continue to sell or carry out funeral plans.
Dignity Funerals Limited will be the regulated entity for the sale and administration of funeral plans. The customers of Simplicity Cremations and AgeCo plans will also be covered by this regulated entity.
Kate Davidson, chief executive officer of Dignity plc said:
"I am pleased to confirm that Dignity has achieved authorisation by the FCA under the new regulatory regime for pre-paid funeral plans, providing all of our existing and new customers security in knowing their funeral plan is held with a reputable and regulated provider.
It has been a long road to regulation, starting with Dignity's early calls for statutory oversight of the sector back in 2017, through to a significant programme of work that has been underway to deliver against the FCA's comprehensive authorisation process.
It is extremely positive to see the regulations finally come into effect, which we believe will provide greater protections for customers, and help to create a more stable and trusted market.
The new rules have touched almost every corner of our business; from compliance and governance, an enhanced focus on customer vulnerability and consumer redress processes, training and people development, as well as a new approach to how we market and sell our product. We have also established the UK Funerals (2022) Trust, overseen by independent trustees.
Regulation of the sector has acted as a catalyst for change, resulting in a small number of organisations withdrawing from the market. Dignity has stood by its commitment to help customers of other plan providers where we can, and as we have with the customers of Safe Hands, have engaged a number of firms that are exiting the market. We continue to provide emergency support to families that have been impacted by the collapse of the firm through providing funeral services to families for a six-month period. We are also close to agreeing a deal with another firm that is not seeking FCA authorisation.
I would like to thank all of our colleagues that have been involved with the strategic and operational effort that has enabled the delivery of our authorisation. I would also like to thank the FCA for maintaining a positive dialogue with Dignity throughout the process. We are proud of what we have achieved and recognise the responsibility Dignity has as a market leader to ensure we continue to deliver the high standards expected by the regulator."
ENDS
LEI: 21380049687CNAYKV483
For further information please contact:
Kate Davidson, Chief Executive Officer
Dignity plc+44 020 7466 5000
Media contacts Chris LaneHannah RatcliffVerity Parker
Buchanan
dignity@buchanan.uk.com +44 020 7466 5000
www.buchanan.uk.com