The FCA is to regulate pre-paid funeral plans from summer 2022, it announced this week.

The Government this week confirmed the legislative timetable for extending the FCA’s remit to cover pre-paid funeral plans.

The FCAC said it welcomed the timetable.

In a statement the regulator said: “We welcome the Government’s laying of legislation setting out a timetable for bringing the regulation of pre-paid funeral plans within our remit. We expect to take responsibility for the regulation of the sector in summer 2022, 18 months after the legislation is made.

In the next few weeks the FCA will publish details of its regulatory plans. It will consult in the spring 2021 on its plans, including proposed rules and the approach to authorising firms.

Final rules will be published later in 2021.

The watchdog said that its wants “good outcomes” for consumers and that customer funds are looked after and used “responsibly.”  

Firms seeking authorisation in this sector will need to submit an application. Firms who want to carry out regulated funeral plan activities must be authorised after a deadline to be set by the FCA.

Those firms continuing regulated activity without authorisation will be committing a criminal offence, said the FCA, which urged firm to start planning now for how to wind down their business in an orderly way before FCA regulation comes into force or seek authorised status.