Funerals

HM Treasury written question – answered on 5th February 2015.

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Photo of Lorely Burt Lorely Burt Assistant Whip (HM Treasury)

To ask Mr Chancellor of the Exchequer, what steps the Government is taking to protect bereaved families if their funeral plan provider goes out of business; and if he will review the effectiveness of procedures in place for those circumstances.

Photo of Andrea Leadsom Andrea Leadsom The Economic Secretary to the Treasury

Under the terms of articles 59 and 60 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, money paid by a customer into a funeral plan must be placed by the plan provider either into a trust account managed by an independent fund manager or invested in a whole life insurance product from an authorised insurer.

The aim of these measures is to ensure that the money consumers pay funeral plan providers is kept securely and segregated from that of the business providing the plan, and is available when the time comes for the delivery of the funeral agreed in accordance with the plan specification.

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