The UK financial regulator indicated it will authorise 24 funeral providers to offer pre-paid funeral plans when they come under its purview next month.
The list includes Dignity (LSE:DTY), Avalon Ltd and Co-Op Funeral Plans Ltd, among others.
Providers of pre-paid funeral plans are currently unregulated but the market is due to come under the remit of the Financial Conduct Authority from 29 July.
This will enable customers to access the Financial Services Compensation Scheme as well as make complaints to the ombudsman.
From late next month, funeral plan providers will be banned from cold calling and paying third parties commission under the FCA’s rules.