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Written question asked by Baroness Burt of Solihull (Liberal Democrat) on Monday, 26 January 2015, in the House of Commons. It was due for an answer on Tuesday, 3 February 2015 (named day). It was answered by Andrea Leadsom (Conservative) on Thursday, 5 February 2015 on behalf of the Treasury.

Funerals

Question

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.

Answer

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.

Secondary information

Type
Written question
Reference
222074
Session
2014-15
Transferred
Yes
Subjects
Consumers Funerals Protection
Link
View this Written question on www.parliament.uk