PROD 7.4 Product governance requirements for subsisting funeral plans

This section applies to a funeral plan provider in relation to a subsisting funeral plan.

A funeral plan provider must ensure that, in relation to its subsisting funeral plans, there are adequate product governance arrangements in place, containing appropriate measures and procedures, to ensure a subsisting funeral plan is carried out in way that complies with the firm’s regulatory obligations under the FCA Handbook.

A firm must:

1. (1)

   regularly review its subsisting funeral plans, taking into account any event that could cause material harm to the customers; and

2. (2)

   ensure the review process in (1), provides that appropriate actions be taken for the mitigation and any potential remediation of the harm to existing customers.

1. (1) [deleted]
2. (1A) A firm must determine, on an ongoing basis, the appropriate intervals for regular review based on the potential for customer harm arising from risk factors associated with the funeral plan product.

3. (2)

    For the purposes of (1A), a firm must take into account:

   1. (a)

       the nature of the customer base, including whether there are significant numbers of vulnerable customers;

   2. (b)

       any indicators of customer harm potentially emerging from the performance of the product; and

   3. (c)

       any relevant external factors such as changes to the applicable legal rules, technological developments, or changes to the market situation.

4. (3) A firm must make and retain a record of:
   1. (a) its determination of the appropriate intervals for the regular review of its product distribution arrangements; and
   2. (b) the reasons for that determination.

1. (1)

   A firm must identify during the lifetime of a subsisting funeral plan any circumstances related to it that may adversely affect a customer.

2. (2)

   Where a firm identifies an event that may adversely affect a customer holding the funeral plan contract, the firm must:

   1. (a)

      take appropriate action to mitigate the situation and prevent further occurrences of the detrimental event; and

   2. (b)

      promptly inform concerned customers about the remedial action taken.