Administrators appointed for funeral plan provider
A Yorkshire-based funeral plan provider with 45,000 customers in the UK has ceased trading.
Nedim Ailyan and Ben Stanyon, of business advisory firm FRP, were appointed joint administrators of Wakefield-based Safe Hands Plans on 23 March.
Ailyan, partner at FRP, said a detailed investigation would be conducted to determine what could be paid back to creditors, including policyholders – whose funds are in a trust fund, which itself has a shortfall compared to what is needed to fully refund clients.
He added: “Regrettably, the administration means the company is not in a position to issue refunds at this time. We appreciate how upsetting this period of uncertainty will be for Safe Hands Plans’ customers and their families.
“Unfortunately, there is a shortfall between the level of plan holder investments and the forecast level of funeral plan costs to be paid.
“Essentially, the value of the investments is not enough to meet the funeral plan obligations of the company.”
Funeral plans activated in the next two weeks – because the policyholder has died – will instead be covered by another provider – Dignity.
Ailyan said a “longer-term solution” was being sought for beyond this deadline, and customers – or their loved ones – would be contacted.
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