FCA Handbook - FPCOB 9.3 Post-contract information: funeral plan contracts

You are viewing FPCOB 9.3 Post-contract information: funeral plan contracts as of . FPCOB 9.3 Post-contract information: funeral plan contracts was last updated on 29/07/2022.

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FPCOB 9.3 Post-contract information: funeral plan contracts

Application

This section applies to a funeral plan provider in relation to:

(1)
the activities of entering into a funeral plan contract and carrying out a funeral plan contract;
(2)
new funeral plans and subsisting funeral plans.

Post-contractual changes

(1)
Throughout the term of a funeral plan, a firm must provide a customer with information about any change to:
1. (a)
  the price of the funeral plan, unless the change conforms to a previously disclosed formula; and
2. (b)
  any term of the funeral plan, together with an explanation of any implications of the change where necessary.
(2)
This information must be provided in writing or another durable medium in good time before the change takes effect or, if the change is at the customer’s request, as soon as is practicable provided the firm explains the implications of the change before it takes effect.

A firm must notify each customer and their nominated representative in good time about any material change to the information concerning potential funeral plan provider failure provided in the funeral plan summary or the nominated representative document, together with an explanation of any implications of the change where necessary. This information must be provided in writing or another durable medium.

(1)
When explaining the implications of a change, a firm should explain any changes to the benefits and significant or unusual exclusions arising from the change.
(2)
Firms will need to consider whether post-contractual changes are compatible with the original funeral plan, in particular whether it reserves the right to vary the price of the funeral plan, charges or other terms. Firms also need to ensure that any terms which reserve the right to make variations are not themselves unfair under the Unfair Terms Regulations (for contracts entered into before 1 October 2015) or the CRA.

Nominated representative document

The purpose of the rules relating to the nominated representative document is to ensure that a customer’s nominated representative is aware of the funeral plan contract, its features and the procedure to be followed upon the covered individual’s death.

A firm must provide the nominated representative document to the customer’s nominated representative within 5 business days of the date of conclusion of the funeral plan contract.

FPCOB 9.3.6R does not apply if:

(1)
the customer has expressly stated that they do not wish their nominated representative to be contacted; or
(2)
the customer is not the covered individual and the customer has confirmed that no nominated representative is to be appointed.

For the purposes of FPCOB 9.3.7R(1), ‘expressly states’ means that the customer has actively opted out of the nominated representative being contacted.

In relation to subsisting funeral plans, a firm must consider whether the information provided to date to the customer’s nominated representative is sufficient to achieve the purpose of this section, and if not, provide the nominated representative document to the customer’s nominated representative as soon as reasonably practicable after [29 July 2022].

The requirement to provide the nominated representative document in FPCOB 9.3.9R only applies to funeral plan contracts where the firm already has the nominated representative’s contact details and consent to contact the nominated representative.

Plan statement - requirement for funeral plan providers

(1)
A firm must provide the customer with a plan statement (FPCOB 9 Annex 3) regarding the funeral plan contract at least once every 3 years.
(2)
In relation to subsisting funeral plans, a firm must provide a customer with the first plan statement no later than 31 August 2023.