Golden Charter has backed calls for mandatory membership of the Funeral Planning Authority (FPA) and enhanced powers for the industry body instead of oversight by the Financial Conduct Authority (FCA).

The funeral provider believes that FCA regulation could put the choice of the funeral director for an intermediary’s client at risk as it could impose a regulatory burden that does not recognise the nature and size of a funeral director’s interest.

Statutory regulation by the FPA, with enhanced powers, a single focus on the funeral sector, and the ability to regulate across the full life of a funeral plan would be better for IFAs and the consumer, while providing the market with a focused regulator, the firm said.

Mandatory membership

Golden Charter also drew attention to the fact that while the majority of pre-paid funeral providers are members of the FPA, membership of the industry body is voluntary, which means some providers and intermediaries are not being held to account. Membership should be compulsory, the provider said.

The HM Treasury is currently consulting on the performance of the funeral plan market, the potential for customer detriment and the future structure of regulation.

“We welcome the call for evidence by HM Treasury and hope we can get to a point where consumers, and intermediaries, fully understand what they are getting when they take out a funeral plan, as well as ensuring any questionable practices are removed from the industry,” said Mark Moran, director of direct sales for Golden Charter.

“As a founding member of the FPA, consumer protection has long been a priority for Golden Charter and we strongly believe the best way forward when it comes to regulation is to make membership of the FPA mandatory and provide it with statutory powers so it can hand out appropriate sanctions.”