Funeral provider Dignity (DTY) closed down more than 4 per cent on the day the Treasury announced the Financial Conduct Authority would take over regulation of the sector from the existing, voluntary regulator.
Pre-arranged plans accounted for 7 per cent of Dignity’s revenues in 2018, with crematoria and funeral services both contributing far more. Broker Peel Hunt noted that the group accounted for a third of the market, adding that the FCA’s involvement was likely to lead to a drop in the number of plans sold in the long-term. Chief executive Mike McCollum said it was "pleased that HM Treasury has taken this decision and, during the transition period, will continue to deliver the high standards of selling and administration of pre-arranged funeral plans that we already provide".