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Question for HM Treasury

UIN 222074, tabled on 26 January 2015

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.

Answered on

5 February 2015

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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