The Funeral Planning Authority (FPA) has reacted to new legislation by the government which will begin the process of moving funeral plan regulation under the remit of the Financial Conduct Authority (FCA) calling it an “Inappropriate solution”.
The new law sets a defined 18-month time period for this transition process to take effect, over which time, the FCA will devise, consult on, and finalise rules around both the conduct and prudential requirements of funeral plan providers.
In a statement on its website, FPA criticised the future “regulatory burden” which will come out of this move.
The FPA said: “The FPA continues to believe that the implemented approach to enhancing the regulation of this market represents an inappropriate solution. We believe that the new regulatory burden will result in reduced competition, and so less choice for consumers which invariably also leads to higher prices.
“We also strongly feel that the FCA will not give this market the attention it warrants, because it is so relatively small in comparison to the markets it currently regulates.”
It added: “This will mean that they will be unable to provide the specialised proactive oversight currently provided by us, and so could expose it to an unnecessary increase in regulatory risk.”