One of the UK’s leading direct cremation specialists has announced its full support of the move to make the industry regulated by the Financial Conduct Authority (FCA).
Distinct Cremations, along with its parent company, Westerleigh, is one of the largest providers of funeral and cremation services in the UK and has been at the forefront of this change, working with industry personnel and the UK Government to ensure people are protected when they need it the most.
The new rules will apply from July 29, 2022, when the FCA takes on responsibility for regulating and supervising the pre-paid funeral plans market.
The FCA explained: “Our new rules will provide continuity for customers where their plan provider fails, by allowing plans to be transferred to a new provider on the same terms as the original contract.
“The rules will also ensure that consumers can receive compensation from their firm if a transfer to another provider is not possible.”
Distinct Cremations has also confirmed that it applied to the FCA last year and anticipates being granted authorised status in advance of the July deadline.
Steve Wallis, Managing Director at Distinct Cremations, said: “Millions of people up and down the UK will be surprised to hear that the industry is not currently regulated, so for many years, people have bought plans in good faith to ensure their loved ones do not face hefty bills upon their death.
“We’re delighted this change is finally coming into force; it’s been a long time coming, and it means that a number of providers will no longer be allowed to trade and sell these plans to trusting consumers.”
Mr Wallis was a pivotal figure in the change, lobbying for the new rules to happen over the last five years. He led and drove the industry research, engaging consumer champions and took the findings to MPs.
These essential changes will ensure that people can buy pre-paid funeral plans with confidence, as only authorised providers will be able to sell plans after that date.
However, this transformation could leave thousands of people out of pocket due to cancelled funeral plans as a result of their suppliers either not applying for authorised status, or withdrawing applications.
It is estimated that 30 providers have still to submit an application to be authorised, and the FCA is working with those firms to understand their intentions going forward.
As part of Westerleigh Group, who have been established for over 30 years, and cares for more than 50,000 families each year, the FCA is open to Distinct Cremations talking with companies that cannot be maintained under the new rules, meaning the business will look to take on other providers’ customers and ensure they are looked after.
“We want to reassure our customers that they have nothing to worry about; our business has been set up by experts in the field with decades of experience,who are fully aware of the FCA rules and standards as well as best practises for consumers,” explained Mr Wallis.
For more information about the FCA changes, visit the Distinct Cremations website here.
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