FSCS clarifies it will not protect customers of failed funeral plans

Although funeral plan providers can choose to be regulated by the Financial Conduct Authority (FCA), the FSCS said in a note on its website neither FCA regulated nor unregulated firms will be covered by the lifeboat fund if they fail because their products "are not categorised as a ‘designated investment' under FSCS's compensation rules". However, the FSCS said in some "limited circumstances" it may be able to pay compensation, for instance when a whole of life insurance policy or the provider of a product held within a trust, goes bust. The scheme said this was because funeral plan p...