After Safe Hands debacle...new fears over rival Capital Life
FUNERAL plan specialist Capital Life has become the latest provider to withdraw its application to be authorised, ahead of new regulatory rules being introduced later this year.
Capital Life, based in Wilmslow, Cheshire, sells plans ranging in price from £1,895 (which it calls ‘simple’) to £8,465 (‘majestic’). But last week, it published a statement confirming it had withdrawn its application to be authorised by the Financial Conduct Authority.
Without such authorisation, a funeral plan provider cannot sell new products after July 29.
Capital Life says its decision to withdraw has been made ‘after careful consideration’. It also says it intends to reapply to the FCA ‘as soon as possible’.
Its statement also points out that the trust fund it uses to hold clients’ money is in good health – ‘funded to 160.1 per cent – 60.1 per cent higher than the minimum FCA’s requirement’ that comes into effect at the end of July.
In other words, it has sufficient assets to pay for all the funerals that customers have paid for in advance.
The company continues to promote plans through its website, even though the FCA states quite clearly on its own website that if a provider has withdrawn its application, ‘you shouldn’t buy a new plan’ from it.
According to the latest data from the FCA, 35 providers have submitted applications to be authorised sellers of funeral plans.
Of the 66 on the regulator’s list of providers, ten have withdrawn applications, five have yet to apply while 16 intend to transfer their plans to a rival – or have already done so.
It is understood that by the end of the month the regulator will give consumers an indication of which providers it is minded to authorise. Those with applications pending include big players such as the Co-op, Dignity and Golden Charter.
People with plans can check on the progress their provider is making with its authorisation application by visiting www.fca. org.uk/consumers/funeral-plans/ providers-list