Safe Hands Plans 2024-03-19
2024-03-19
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The Financial Conduct Authority (FCA) has been criticized for its handling of the Safe Hands funeral plan fiasco, with many customers out of pocket by £60 million. Nick Smith is concerned about delays in responding to freedom of information requests and questions the Treasury's support during the transition from an unregulated sector into regulation.
Whether he has had recent discussions with the Financial Conduct Authority on the administration of Safe Hands Plans. My experience of the FCA and the Safe Hands funeral plan fiasco is that it took six months to reply to my freedom of information request and pleaded commercial confidentiality to key questions, and that, despite being warned, the Treasury failed to support consumers moving from an unregulated sector into regulation. At least 47,000 people are out of pocket to the tune of £60 million.
I share the hon. Member's anger at how Safe Hands customers have been treated. The business is under criminal investigation by the Serious Fraud Office and its administrators are bringing legal action against the former owner of the Safe Hands business. In the Treasury, we do not believe it is right to use taxpayer money to compensate consumers who lose out due to the conduct of unregulated firms; Safe Hands was not within the regulatory perimeter at that time.
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Assessment & feedback
The Minister did not directly address the request for an independent review and instead focused on reasons against using taxpayer funds for compensation.
Did Not Believe It Is Right To Use Taxpayer Money
Response accuracy
Q2
Partial Answer
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Context
The Financial Conduct Authority (FCA) has been criticized for its handling of the Safe Hands funeral plan fiasco, with many customers out of pocket by £60 million. Nick Smith is concerned about delays in responding to freedom of information requests and questions the Treasury's support during the transition from an unregulated sector into regulation.
My experience of the FCA and the Safe Hands funeral plan fiasco is that it took six months to reply to my freedom of information request and pleaded commercial confidentiality to key questions, and that, despite being warned, the Treasury failed to support consumers moving from an unregulated sector into regulation. At least 47,000 people are out of pocket to the tune of £60 million.
In the Treasury, we have worked with the sector so that the two largest providers of funeral plans have agreed to provide significantly discounted replacement plans for the customers who have found themselves so badly treated.
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Assessment & feedback
The Minister did not directly address the request for an independent review and instead provided information on discounted replacement plans offered by other providers.
Worked With The Sector
Response accuracy