FPCOB 15.5 Core capital resources requirement for funeral plan provision activities

Subject to FPCOB 15.7.1R, for a firm with a Part 4A permission to carry on regulated funeral plan provision activities to which FPCOB 15.6.1R does not apply, the core capital resources requirement is the higher of:

1. (1)

   £20,000;

2. (2)

   2.5% of the firm’s annual income; or

3. (3)

   the sum of:

   1. (a)

      the number of undrawn funeral plan contracts backed by trust arrangements, multiplied by the median of the amounts that would be payable to the firm under each trust arrangement if a funeral were required on the day following the end of the firm’s previous period for submitting its funeral plan financials return in accordance with SUP 16.12, multiplied by 0.5%; and

   2. (b)

      the number of undrawn funeral plan contracts backed by a whole of life insurance policy, multiplied by the median of the amounts payable to the firm under each whole of life insurance policy if a funeral were required on the day following the end of the firm’s previous period for submitting its Funeral plan financials return in accordance with SUP 16.12, multiplied by 0.5%.

The calculation in FPCOB 15.5.1R(3) does not include any undrawn legacy funeral plan contracts held by the firm.