Sheffield-based funeral plan provider One Life Funeral Planning Ltd (OLFP) has entered administration after failing to secure authorisation to the Financial Conduct Authority (FCA)
Andrew Watling, and Kelly Mitchell, insolvency practitioners at business advisory firm Quantuma, have been appointed as joint administrators.
Incorporated in December 2020, Sheffield-based OLFP offered about 14,000 customers a variety of funeral and cremation plans on both a prepaid and payment by instalment basis.
Businesses operating in the pre-paid funeral plan sector became subject to FCA regulation on 29 July 2022 and OLFP were one of a number of providers who were unsuccessful in obtaining FCA approval.
The regulations allowed unsuccessful providers to continue to trade on a limited basis – fulfilling existing plans, but unable to sell new plans – until 31st October 2022, while efforts could be made re transfer plans to a new, authorised provider.
Quantuma business advisory appointed as administrators
OLFP directors have been working with Quantuma advisers to enable them to comply with FCA requirements to wind down operations and seek to transfer their customers’ plans to an alternative authorised plan provider in an orderly manner.
Having been unsuccessful in transferring the plans before the 31st October deadline, OLFP has appointed administrators, which allows these efforts to continue for a limited time.
Despite the administration, the administrators will be able to continue to collect instalment payments and arrange funerals in the event that any customers die before a transfer can be completed.
Sheffield based OLFP operated a trust fund, into which customer payments were invested. All instalments paid after the date of administration will be ring-fenced and will be refunded in full to customers in the event that a transfer to an authorised funeral plan provider does not proceed.
OLFP is one of a number of providers in the sector to have entered a formal insolvency process as a result of their failure to obtain FCA regulation, and the second that Quantuma has been instructed over, following their appointment as liquidators of Not For Profit Funerals Limited, in September.
Andrew Watling, managing director at Quantuma, said: “We understand that One Life’s situation will be unsettling news for its 14,000 or so plan holders. We’re working closely with the FCA and the trustees of The One Life Trust to lessen the impact as far as possible and find the best solution for customers and will provide regular updates on our progress.
Bereavement Helpline still active
One Life Funeral Planning Ltd’s Bereavement Helpline is still active and we would ask that it only be used for its intended purpose. This will help to avoid any unnecessary delays in responding to notifications, and adversely affecting the bereaved at that difficult time.
We understand that this can be a difficult time for those who have lost a loved one, and we want to do everything we can to help. The Bereavement Helpline is a resource that can be used to help make the process a little bit easier.
Further Advice for Funeral Plan Providers can be found on our website.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.