Funeral plan provider not FCA authorised - website down

socratez

I few years ago I bought my mum and dad a funeral plan with Empathy UK. I have recently read on the FCA website they are not authorised to do so and people should not buy plans from them. I went to the Empathy UK website today and it is unavailable.

Does anyone have any info on Empathy UK or their situation? What should I do? Part of the reason I chose Empathy UK is because their literature said the operated within FCA guideline and the money was kept in a separate trust fund so it is protected. Now I am not so sure that is the case.

sheramber

Empathy withdrew their application  for authorisation  on 22 April 22.

Still open on Companies House

https://www.companiesintheuk.co.uk/company/empathy-uk-funeral-plans/control

GDB2222

Sadly, several of these funeral plans were simply Ponzi schemes. They were using the money from new subscribers to pay for the funerals of old subscribers, and whilst they may have held their funds in a separate trust fund that was no guarantee that they had anything like enough money left to meet their obligations.

That is not to say that Empathy were in any way fraudulent, nor that they cannot meet their obligations in due course. Yet, a company that handled millions of pounds of other people's money filed unaudited accounts at Companies House, and that is clearly wrong. 

Malthusian

Unfortunately you may have to have a difficult conversation with your parents. 
If you/your mum/your dad paid via credit or debit card you may be able to make a section 75 or chargeback claim on the grounds you paid for a service which was not delivered.
Otherwise it would be best to write off the investment and treat any return as an unexpected bonus.

sheramber said:

Empathy withdrew their application  for authorisation  on 22 April 22.

Still open on Companies House

https://www.companiesintheuk.co.uk/company/empathy-uk-funeral-plans/control

If a company's turned off all the lights, "active" status on Companies House only means that they haven't been put into administration yet (which can take months or longer and needs someone to go to the expense of filing a court claim) or been dissolved for another reason (directors pull the plug themselves, Companies House dissolves them after they stop filing and don't respond to warnings). 
Short answer: active status on Companies House is no comfort to the OP.

GDB2222 said:

Yet, a company that handled millions of pounds of other people's money filed unaudited accounts at Companies House, and that is clearly wrong. 

It is indeed. But nonetheless completely legal.

GDB2222

Sorry, I should have been clearer that allowing Empathy to file unaudited accounts was wrong, ie a failure in supervision at Companies House. 

Still, the government wants a light touch regime to encourage business. 

Malthusian

GDB2222 said:

Sorry, I should have been clearer that allowing Empathy to file unaudited accounts was wrong, ie a failure in supervision at Companies House. 

I would be very surprised if Empathy wasn't fully within its rights to file unaudited accounts under small company exemptions.
We probably both agree that companies handing millions worth of investments should file full audited accounts regardless of their size. But that's a political debate, not a failure of Companies House. Part of the trouble is that until July, paying for a funeral in advance was treated in the same way as paying John Lewis today for a fridge to be delivered next month, or people paying Farepak every week for a hamper to be delivered at Christmas, rather than an investment security. 

Still, the government wants a light touch regime to encourage business. 

Not in the area of funeral plans, apparently. Funeral plans have been unregulated under every Conservative, Labour and Whig government since they were a thing (we're certainly going back to the 19th century if not beyond). Until Bojo's Tories gave the job to the FCA.
They didn't call Johnson the most socialist Tory in history for nothing, did they.

GDB2222

"I would be very surprised if Empathy wasn't fully within its rights to file unaudited accounts under small company exemptions."

It was never my intention to imply otherwise. Sorry if that's how people read my comments, and happy to set the record straight.

Jonty6262

This provider has told us it is planning to transfer its book and should be contacting existing customers in due course. Get in touch with the firm if you have any concerns.  

See May 2022 and July 2022 consumer alerts.

Contact the firm if you have any questions about your plan: 

Stafford Court, 145 Washway Road, Sale, M33 7PE 
Email: info@empathyfuneralplans.co.uk
Telephone: 0800 035 5729