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Monday 30th November 2015
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updated 5.50pm, Wednesday 29th April 2020
Funeral plan trusts: new actuarial standard set to launch
On 1 January 2016, a new Actuarial Profession Standard (APS) relating to UK trust-based pre-paid funeral plans will come into force.
APS Z1 applies to all members working for, advising or involved with funeral plan trusts. The IFoA has also produced guidance to help members and Trustees understand the APS and how to apply the requirements in practice.
Key requirements
The APS will require members to ensure they:
Other guidance
A Guide for Actuaries on UK Trust-Based Pre-Paid Funeral Plans has been produced for members working with funeral plan trusts, offering ethical and technical guidance.
Furthermore, in conjunction with a trustee, we have produced a Guide for Trustees On Trust-Based Pre-Paid Funeral Plans to set out for trustees the role and professional obligations of members, with a view to enhancing understanding of actuarial advice and its implications.
For further information, email [email protected]
APS Z1 applies to all members working for, advising or involved with funeral plan trusts. The IFoA has also produced guidance to help members and Trustees understand the APS and how to apply the requirements in practice.
Key requirements
The APS will require members to ensure they:
- have the requisite skills and documentation to take on the appointment to undertake the valuation of the funeral plan trust;
- have the right information-gathering and escalation measures available to them to undertake appropriately the valuation of the assets and liabilities of the funeral plan trust;
- are aware of planholders' contractual entitlements, to ensure that there are adequate systems of control in place intended to ensure that planholders are not misled as to their expectations;
- report any concerns to the most appropriate regulator and/or to other professionals who may be involved in advising funeral plan trustees and plan providers if they discover that there is a material shortfall in the assets held by the trustees to cover the liabilities, or that the plan provider's contractual obligations exceed significantly the liabilities of the funeral plan trust.
Other guidance
A Guide for Actuaries on UK Trust-Based Pre-Paid Funeral Plans has been produced for members working with funeral plan trusts, offering ethical and technical guidance.
Furthermore, in conjunction with a trustee, we have produced a Guide for Trustees On Trust-Based Pre-Paid Funeral Plans to set out for trustees the role and professional obligations of members, with a view to enhancing understanding of actuarial advice and its implications.
For further information, email [email protected]
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