The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

The activityU.K.

Funeral plan contractsU.K.

59.—(1) Entering as provider into a funeral plan contract is a specified kind of activity.

[F1(1A)   Carrying out a funeral plan contract as provider is a specified kind of activity.]

(2) A “funeral plan contract" is a contract F2... under which—

(a)a person (“the customer") makes one or more payments to another person (“the provider"); and

(b)the provider undertakes to provide, or secure that another person provides, a funeral in the United Kingdom for the customer (or some other person who is living at the date when the contract is entered into) on his death;

unless, at the time of entering into the contract, the customer and the provider intend or expect the funeral to occur within one month.

[F3(2A) For the purposes of paragraph (1A), “provider” includes a person who has assumed the undertaking referred to in paragraph (2)(b) as a result of the novation, assignment or transfer by operation of law of an existing funeral plan contract.]

[F4(3) Where—

(a)a person (“A”) has a funeral plan contract (“the contract”) with a customer under which A has given or assumed the undertaking referred to in paragraph (2)(b);

(b)another person (“B”) intends to give an equivalent or substantially similar undertaking (“the proposed undertaking”) to that customer;

(c)A and B intend that B’s proposed undertaking will replace A’s undertaking;

(d)paragraph (4) or (5) applies; and

(e)A and B have notified the FCA in writing—

(i)that they consider the conditions in sub-paragraphs (a) to (d) to be met; and

(ii)of a date, on or after 29th July 2022, from which A and B agree to regard B’s undertaking as having replaced A’s undertaking for the purpose of the operation of this article;

for the purposes of paragraph (1A), B is to be treated as if B were carrying out the contract as provider from the date specified in the notification to the FCA under sub-paragraph (e)(ii).

(4) This paragraph applies if—

(a)A and B intend that, in order for B’s proposed undertaking to replace A’s undertaking under the contract, B should assume A’s undertaking by novation;

(b)A has taken reasonable steps to secure the customer’s written consent to the proposed novation; and

(c)the customer has neither provided that consent nor objected, in either case within a reasonable period.

(5) This paragraph applies if it appears to A and B that it would not be reasonably practicable for B to assume A’s undertaking referred to in paragraph (2)(b) by novation, assignment or operation of law, or for the conditions in paragraph (4) to be met, before the first day paragraph (1A) applies in relation to activities carried on by A in accordance with articles 1 and 1A of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2021.

(6) If—

(a)paragraph (3) applies; and

(b)the proposed undertaking referred to in paragraph (3)(b) is given to the customer;

then that undertaking is to be treated as if it were a “funeral plan contract” for the purposes of paragraph (2).]