FPCOB 12.2 Obligations on intermediaries

1A firm engaged in funeral plan distribution must not accept payments which are payable to a funeral plan provider under a funeral plan contract unless:

1. (1)

   the payment is:

   1. (a)

      received as agent for the funeral plan provider;

   2. (b)

      made in cash;

   3. (c)

      made at the time the funeral plan contract is entered into by the firm as agent of the funeral plan provider; and

   4. (d)

      2deemed received by the funeral plan provider on receipt by the agent under the following contracts:

      1. (i)

         the funeral plan contract;

      2. (ii)

         the contract between the funeral plan provider and the agent; and

      3. (iii)

         (where the firm is using an appointed representative) the contract between the firm and the representative; or

2. (2)

   [deleted]2

3. (3)

   2the payment is made by cheque payable to the funeral plan provider and:

   1. (a)

      is paid into the bank account of the funeral plan provider promptly and, in any event, no later than three business days after receipt; or

   2. (b)

      is forwarded to the funeral plan provider promptly and, in any event, no later than 3 business days after receipt.

1FPCOB 12.2.1R does not apply to:

1. (1)

   a funeral plan provider when distributing its own funeral plan contracts directly to customers; or

2. (2)

   a payment which is an FP distribution charge.