Apply to become a pre-paid funeral plans firm

If you’re a new funeral plan provider or intermediary, find out when you need to apply to us for authorisation and how to apply.

Before carrying out any business, you must either:

be directly authorised by us, which means applying to us for authorisation, or
be an appointed representative (AR)[1] of a principal firm, which means your principal firm must apply to us on your behalf

Other pages in this section explain how to:

appoint intermediaries as ARs[2] if you’re a funeral plan provider
become an AR[3] if you’re a funeral plan intermediary
apply for a variation of permission[4] if you’re already authorised by us

When you need to be directly authorised by us

If you provide pre-paid funeral plans

We regulate 2 activities:

entering into new funeral plan contracts
carrying out funeral plan contracts – this is when firms administer funeral plan contracts, whether these were entered into before or after our regulation started

If you sell and administer new funeral plan contracts, you need permissions for both the above activities.

If you want to stop selling new funeral plans but continue administering existing plans, you’ll still need to apply for our authorisation to carry out funeral plan contracts.

If you’re involved in selling pre-paid funeral plans

This includes funeral directors, will writers and operators of lead generation websites. These intermediary firms generally advise customers on funeral plan contracts, or arrange them for customers.

You’ll need to apply for us if you carry out any of the following activities:

advising
arranging (bringing about)
dealing as an agent
making arrangements

What to read first

The application process

Our how to apply[5] page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect[6] system, so make sure you register[7].

Policy and guidance

Read our policy statement[8] and consultation paper[9] to understand how we regulate funeral plans and the rules for firms undertaking funeral plans.

Threshold conditions

Our threshold conditions[10] are our minimum standards for authorised firms.

You'll need to explain how you'll continue to meet each threshold condition.

Perimeter guidance

Consider which permissions you need to apply for.

You'll need to explain how the permissions and investment types in our perimeter guidance[11] match up with your business model, and how you intend to hold and/or safeguard any client money or assets.

Don’t apply for permissions you don’t need or intend to use – this will delay your application.

Our how to apply[5] page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect[6] system, so make sure you register[7].

Read our policy statement[8] and consultation paper[9] to understand how we regulate funeral plans and the rules for firms undertaking funeral plans.

Our threshold conditions[10] are our minimum standards for authorised firms.

You'll need to explain how you'll continue to meet each threshold condition.

Consider which permissions you need to apply for.

Don’t apply for permissions you don’t need or intend to use – this will delay your application.

Prepare your application

You must submit your application through Connect[12].

Make sure you include:

your regulatory business plan
all the required forms and supporting material

The sections below have more information about what we expect to see in your application.

Regulatory business plan (RBP)

This is an important document that we’ll use to assess your firm’s activities, so please be comprehensive. We don’t expect to see a generic marketing document. If your RBP isn’t detailed enough and tailored to your business, your application will take longer.

Refer to our sample business plan[13] for everything you need to include, and make sure you consider the following areas:

Background	State the aims and objectives of your firm and why you’re applying for this type of authorisation. If your firm is part of a wider group, explain where it fits in with the group strategy.
Business to be undertaken	Explain where your firm will fit within the market and how your products and services compare to competitors. This should include the types of business your firm intends to be involved in (including, for example, a customer profile) and how your business will be distributed. We also expect to see complete projected financials that explain how you will maintain your minimum capital requirements.
Governance	Provide an overview of your firm’s governance arrangements, including Board composition and any Board sub-committees.
Staff	Include an organisation chart that shows your key staff and roles, including all controllers[14] and close links[15], what business they conduct and whether they’re regulated. Explain the rationale for the appointment and suitability of members of the governing board, the compliance officer and other approved persons[16]. Describe the background and experience of everyone performing significant, influence-controlled functions such as directors or senior managers.
Outsourcing	Think about what areas of the business are going to be outsourced and how this will be overseen.
Systems and controls / Risk Management	Consider how your firm will identify and manage conduct risks. Provide an overview of your firm’s financial crime controls, anti-money laundering procedures and due diligence processes.
Trust or insurance arrangements (providers only)	Explain how your firm will meet the rules setting out arrangements that underpin funeral plan contracts. You must provide funerals in line with the terms of the funeral contact.

Required forms and supporting material

If you’re applying to be authorised by us, complete the:

authorisation form[17] – refer to the guidance notes[18]  for help
supplement form[19] – refer to the guidance notes[20] for help
fair value assessment[21] (providers only)

If instead you’re applying to vary your permission, there’s a separate form[22] and guidance notes[23].

In your supporting material

The supplement form lists all the supporting documents we expect you to send as part of your application.

This includes:

your financial forecasts – learn how to prepare your firm’s financial information[24]
the supporting material[25] you’ll rely on to meet the requirements of our Consumer Duty

Your application should also include:

a UK-designated principal place of business – serviced offices are generally considered inadequate
a UK bank account for your firm
details of trustees or insurance providers, depending upon your choice (providers only)

We might ask for other documents to help us assess your application. If so, please send these to us promptly.

Complying with our Senior Managers and Certification Regime (SM&CR)

We’ll assess the honesty, integrity and reputation of key members of staff in your firm’s management, as well as their competence, capability and financial soundness.

Your application must clearly:

explain how and why individuals in key roles were selected, based on their relevant experience as well as the scope of their regulatory responsibilities
demonstrate how you’ve applied our rules under the SM&CR to your business

Read more about the SM&CR in our policy statement[15] and in chapter 8 of our consultation paper[16].

Prudential requirements

Whether you’re applying to be a funeral plan provider or an intermediary (whether directly authorised or as an AR), you must meet our prudential requirements.

You can read about this in our policy statement[33].

Providers – to help us assess your financials, if your company’s statutory accounts are prepared on a consolidated basis with your trust accounts, you must be able to provide a stripped-out version of the company accounts that outlines the company’s standalone financial position.

Intermediaries – please prepare your business to make sure you have the financial resources to meet these requirements. If you apply for direct authorisation, you must demonstrate in your application how you’ll meet these requirements.

Application fee

You have to pay a fee to submit your application. The fee is non-refundable.

The fee for funeral plan:

providers falls into pricing category 5
intermediaries falls into pricing category 4

Find out more about our authorisation fees[22], including our pricing categories and how to pay.

Final check and submit

Before you submit everything on Connect, give it one more check to be sure you’ve included everything.

Our how to apply[23] page has 3 top tips to ensure your application goes smoothly, and explains what happens after you’ve submitted it.

If you need more help

Please contact us on 0300 500 0597. We’re open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.

13/09/2024 : Information changed Fees category updated

28/08/2024 : Link changed broken link updated

04/12/2023 : Editorial amendment

01/11/2023 : Information changed Information updated as part of website refresh

10/02/2023 : Editorial amendment page updated as part of website refresh

29/07/2022 : Information changed Updates to page following regulation on 29 July.

01/09/2021 : Information added applications open for authorisation

04/08/2021 : Information added Applications for authorisation

23/07/2021 : Information added Registering for Connect.

13/07/2021 : Editorial amendment Clarification of regulation date.

First published: 11/06/2021 Last updated: 13/09/2024 See all updates