1This chapter applies to:

1. (1)

   a funeral plan intermediary; and

2. (2)

   a funeral plan provider in relation to the distribution of its own funeral plan contracts.

1In good time before a customer enters into a funeral plan contract:

1. (1)

   a firm must provide the customer with at least the following information:

   1. (a)

      its identity, address and whether it is a funeral plan intermediary or a funeral plan provider;

   2. (b)

      the appropriate statutory status disclosure statement (see GEN 4);

   3. (c)

      the fact that it is included in the Financial Services Register and the means for verifying this;

   4. (d)

      whether it provides a personal recommendation about the funeral plans offered or information;

   5. (e)

      whose funeral plans it offers;

   6. (f)

      the procedures allowing customers and other interested parties to register complaints about the firm with the firm and the Financial Ombudsman Service or, if the Financial Ombudsman Service does not apply, information about any out-of-court complaint and redress procedures available for the settlement of disputes between the firm and its customers; and

2. (2)

   a funeral plan intermediary must also provide the customer with the following information:

   1. (a)

      whether it has a direct or indirect holding representing 10% or more of the voting rights or capital in a given funeral plan provider;

   2. (b)

      whether a given funeral plan provider or its parent undertaking has a direct or indirect holding representing 10% or more of the voting rights or capital in the firm; and

   3. (c)

      whether it is representing the customer or is acting for and on behalf of the funeral plan provider.

1. (1)

   1Where a funeral plan intermediary proposes or advises on a funeral plan contract then in good time before the conclusion of a funeral plan contract and, if necessary, on its amendment, a funeral plan intermediary must provide the customer with at least information on whether the firm:

   1. (a)

      gives a personal recommendation, on the basis of a fair and personal analysis of funeral plans available in the market; or

   2. (b)

      is under a contractual obligation to conduct funeral plan distribution exclusively with one or more funeral plan providers, in which case it must provide the names of those funeral plan providers; or

   3. (c)
      1. (i)

         is not under a contractual obligation to conduct funeral plan distribution exclusively with one or more funeral plan providers; and

      2. (i)

         does not give a personal recommendation on the basis of a fair and personal analysis of funeral plans available in the market;

      in which case it must provide its customer with the name of those funeral plan providers with which the funeral plan intermediary may and does conduct business.

1This section applies to all information required to be provided to a customer in this chapter and in other chapters or sections where stated.

1. (1)

   1A firm must communicate information to a customer using any of the following:

   1. (a)

      paper; or

   2. (b)

      a durable medium other than paper; or

   3. (c)

      a website (where it does not constitute a durable medium) where the website conditions are satisfied.

2. (2)

   The firm must communicate the information in (1):

   1. (a)

      in a clear and accurate manner, comprehensible to the customer;

   2. (b)

      in English or in any other language agreed by the parties; and

   3. (c)

      free of charge.

1Where the information is communicated using a durable medium other than paper or by means of a website, the firm must, upon request and free of charge, also send the customer a paper copy.

1A firm must ensure that a customer’s choice or consent to receive the information by means of a website (whether a durable medium or where the website conditions are satisfied) is an active and informed choice or consent.

1In the case of telephone selling:

1. (1)

   the information must be given in accordance with the distance marketing disclosure rules (see FPCOB 5); and

2. (2)

   if prior to the conclusion of the contract the information is provided orally, the firm must also provide the information to the customer in accordance with FPCOB 6.2.2R immediately after the conclusion of the funeral plan contract.

1This section applies to a firm that imposes a fee in connection with a funeral plan or its regulated funeral plan activity.

1. (1)

   1Where a fee is payable, the firm must inform its customer of the amount of the fee.

2. (2)

   The information in (1) must be given before the customer incurs liability to pay the fee, or before entering into the funeral plan contract, whichever is earlier.

1The fee disclosure requirement extends to all such fees that may be charged in connection with a funeral plan or the firm’sregulated funeral plan activity.

1This section applies to a firm which carries on funeral plan distribution.

1A firm must:

1. (1)

   only be remunerated for its funeral plan distribution (and any other related services provided by the firm) by FP distribution charges; and

2. (2)

   not solicit or accept (and ensure that none of its associates solicits or accepts) any other commissions, remuneration or benefit of any kind in connection with the firm’s business of engaging in funeral plan distribution or any other related services, regardless of whether it intends to refund the payments or pass the benefits on to the customer or covered individual,

except as provided in this section.

1‘Related service(s)’ for the purposes of FPCOB 6.4.4R includes:

1. (1)

   communicating or approvingfinancial promotions in relation to a funeral plan contract or regulated funeral plan activity;

2. (2)

   recommending a funeral plan provider.

1If the firm’sfuneral plan distribution relates to funeral plan contracts entered into by the firm itself or by an associate, the firm must ensure that the level of its FP distribution charge is at least reasonably representative of the services associated with its funeral plan distribution (and related services).

1A firm which carries on funeral plan distribution and is also a provider of funerals must ensure that:

1. (1)

   the level of its FP distribution charge is at least reasonably representative of the cost of the services associated with its funeral plan distribution; and

2. (2)

   any payments which it receives from a funeral plan provider under a funeral plan contract are reasonably representative of the cost of delivering the relevant funeral.

1A firm may receive:

1. (1)

   training on the funeral plan contracts in relation to which it carries on funeral plan distribution; and

2. (2)

   appropriate support with complying with its obligations under the regulatory system from a funeral plan provider.

1Any training or support received for the purposes of FPCOB 6.4.14R must be:

1. (1)

   of a scale and nature that it could not be judged to impair the firm’s compliance with its duty to act honestly, fairly and professionally in the best interests of the customer or covered individual; and

2. (2)

   reasonable, proportionate and of a scale that is unlikely to influence the firm’s behaviour in any way that is detrimental to the interests of any relevant customer or covered individual.

1A firm must keep a record of the FP distribution charges paid by each customer.

1This section applies to a funeral plan provider.

1A firm must not offer or pay (and must ensure that none of its associates offers or pays) any commissions, remuneration or benefit of any kind to:

1. (1)

   another firm in connection with that firm’s business of engaging in funeral plan distribution;

2. (2)

   another person in connection with:

   1. (a)

      that person’s business of engaging in funeral plan distribution:

      1. (i)

         for which it does not require authorisation; or

      2. (ii)

         which it carries on in breach of the general prohibition;

   2. (b)

      business of that person which would involve engaging in funeral plan distribution but for an exclusion in the Regulated Activities Order;

   3. (c)

      that person’s business of introducing customers to another person in relation to funeral plan contracts;

3. (3)

   a person in (1) or (2) in relation to any related services; or

4. (4)

   any third party for the benefit of a person, and in the circumstances described, in (1) to (3),

except as provided in this section.

1 FPCOB 6.5.2R does not apply to training or support which meet the requirements of FPCOB 6.4.14R and FPCOB 6.4.15R.

1 FPCOB 6.5.2R does not prevent a funeral plan provider from making payments to a person2 merely to communicate a financial promotion.