A funeral services provider has called for stronger regulation in the funeral planning sector.
In a detailed document released this week, Dignity has set out plans for a greater form of regulation with an aim to improve protection for consumers.
Developed in collaboration with regulatory experts, Dignity has set out an in-depth vision for what more robust, yet proportionate regulation would look like in the funeral planning market.
Though steps have been taken to raise awareness of the problems within the sector, research by Dignity indicates that significant issues remain. It found that a number of providers entering the market use high pressure methods to generate sales, with none of them being registered with the Funeral Planning Authority. The research did indicate that companies have begun to improve their conduct, following campaigns led by the organisation.
As well as setting out the reasons why it believes greater regulation is required, Dignity’s White Paper will also reflect on the existing regulation, and look to what the changes hope to achieve, feeding into the FPA’s review of its rules.
Where its proposals are concerned, Dignity’s stance is based around principles which underpin the approach of regulators such as the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
One of the key proposals is a set of stronger regulation which would see the existing Funeral Planning Authority brought onto a statutory footing. In order to trade, firms would therefore be compelled to register with them.
Simon Cox, Dignity’s Head of Insight and External Communications said, “Following the research we conducted last year and the report with Fairer Finance, it was important to maintain momentum. We have seen growing support amongst policy makers and consumer groups for action and have therefore drafted a White Paper detailing a stronger form of regulation which will better protect the consumer.”
“Our recent research shows that while improvements in conduct are evident many of the issues identified last year remain. Our recent research shows that while improvements are evident there remains significant issues facing consumers from funeral plan providers and distributors that are not registered with the FPA.
“The FPA is the natural solution to improving standards in the sector due to its expertise and understanding of how the market works, and the important steps it has taken in recent years to strengthen its independence and processes. In many ways the existing FPA rules are, as can be evidenced by our White Paper, a good platform on which stronger regulation can be built. Our advice and preference would be for a statutory FPA but if this is not feasible, FCA regulation would be preferable to the status quo.”
The White Paper can be accessed here.
