Safe Hands Funeral Plans Liquidation Latest: Possible helping hand

Latest on Safe Hands Plans Liquidation.

FROM DIGNITY 11th May 2022: “We are pleased to announce our commitment to support those that have been impacted by Safe Hands entering administration by agreeing to fulfil all funerals for existing customers for six months.

During the next six months we will also make an offer to each existing Safe Hands customer of a replacement funeral plan from Dignity.

Our core aim is to protect customers, and to ensure no family or person goes without a funeral for their loved one due to the transition impacts of the new regulation.
 
For more information please visit https://lnkd.in/eZcGe7jE”

Liquidators filing on Safe Hands – sadly, the interesting bit are hard to read, but they have apparently written to all plan holders. We await to hear who will be prosecuted!

Latest information – according to the liquidators, plan holders are likely to get only a small proportion of their money back.  Somehow, the companies Trust fund went from comfortably funded at 120% of the actuarially determined value necessary to way under the needed amount.   Let us hope that criminal proceedings follow.

Apparently the trustees saw fit to lend large amounts of money to one organisation to purchase property, according to Money Mail.

We have ourselves have recommended Safe Hands in the past, long before the present management took over, when the Trust Fund had surplus funds substantially in excess of the FCA requirements. We are at a loss to see how so much money can have been lost by the Trustees investing in “safe” investments. This is not to blame the current management, as they presumably had no control over how the independent Trust invested its money.

Safe Hands Plans – what the devil is going on?

Safe Hands as a company has no control over the Safe Hands Trust Fund, which is completely independent and charged solely with managing the clients’ money and paying for funerals as needed. That is what I understand.

So why are Safe Hands Trust Fund members not safe?  Why is the liquidator of Safe Hands, the company, taking charge of the Safe Hands Trust Fund, which should have no legal connection with Safe Hands the company?  The Trustees of Safe Hands Trust Fund should not be involved with the liquidators are far as I can see, and the fund should be safe from the liquidation of the company.

Was the Trust Fund set up wrongly?  Are the liquidators wrong to be threatening the assets of the members of the Safe Hands Trust Fund?  Are they wrong to be forcing members of the Safe Hands Trust Fund to break their contracts and thus incur penalties and reduce the value of individuals’ benefit fund?  Are they right to penalise people who have moved, and may know nothing of the liquidators very odd demands that they register as a creditor?

None of this makes any sense to me, so I have asked the liquidator safehands@frpadvisory.com .

In the meanwhile, I would suggest Safe Hands clients ask them the same questions, ad copy the letter to their MP.  Something very odd is going on.

update: A spokesperson for Safe Hands, said: “Safe Hands plans to continue to deliver funeral services up to the 29th July and is doing everything possible to ensure that customers’ funeral plans are honoured after this date under a new plan manager.” https://www.bbc.co.uk/news/business-60861793

We say: all Safe Hands plan holders money is held in an independently managed Trust Fund which is unaffected by what happens to Safe Hands.  People who cash in will leave any investment growth behind to help pay for the funerals of the people who stay.  For more information look out for a letter from them in the next few weeks as they organise someone to take over the delivery of funerals to be paid from the separate Trust Fund.

  • Safe Hands Funeral Plans
  • 12 Mariner Court
  • Calder Park
  • Wakefield
  • WF4 3FL
View this email in your browser



Good afternoon,

We are emailing to notify you that after a series of meetings with the FCA this week, Safe Hands has taken the very difficult decision to withdraw their application.

As a direct result of this decision, as per the FCA application process, and with immediate effect,  we will to cease to take on new business.

We will continue to operate and administer all current funeral plan holders.

We will be back in contact in due course with further information.

Many thanks

Safe Hands Funeral Plans

A spokesperson for Safe Hands, said: “Safe Hands plans to continue to deliver funeral services up to the 29th July and is doing everything possible to ensure that customers’ funeral plans are honoured after this date under a new plan manager.”

Good afternoon,

We are emailing to notify you that after a series of meetings with the FCA this week, Safe Hands has taken the very difficult decision to withdraw their application.

As a direct result of this decision, as per the FCA application process, and with immediate effect,  we will to cease to take on new business.

We will continue to operate and administer all current funeral plan holders.

We will be back in contact in due course with further information.

Many thanks

Safe Hands Funeral Plans

Safe Hands Trust Fund Being a newer player in the funeral plans market, Safe Hands are keen

Safe Hands Funeral Plan Trust Fund
Safe Hands Trust Fund

to reassure potential clients.  In the UK, there are strong controls over the funds of properly established funeral plan companies. Here is what they have to say on the subject of their Trust Fund. “The Safe Hands Trust Fund was set up in conjunction with Wrigleys LLP (a law firm specialising in such funds), great care has been taken to ensure the fund in which our customers’ monies are invested, complies with all current legislation as set out in the Regulated Activities Order (Financial Services and Markets Act 2000).

Updated 2021.

  • The money in the Safe Hands Plan Trust is held by Sterling Trust Corporation Ltd – specialist and independent trustees. They work in partnership with independent investment managers to make sure your money is soundly invested and secure.
  • Zenith Actuaries are appointed as actuaries to the Trust Fund, who provide a report on an annual basis.
  • The Trust Fund is audited annually by JW Hinks and trust accounts prepared.

SUMMARY OF THE ACTUARIAL REPORT ON THE SAFE HANDS PLANS TRUST 2016.

Funeral Plan Quotes
Funeral Plan Quotes

The triennial report was prepared by Mazars LLP, a top ten UK audit and accounting firm and one of Europe’s largest audit and accounting firms, dated 21 October 2016, following their appointment to do so by the Trustees, Pitman’s Independent Trustees Limited. The report complies with the Technical Actuarial Standards on Funeral Plans, Modelling, Data and Reporting, as issued by the Financial Reporting Council, and the Actuarial Profession Standards APS Z1 and APS X2 issued by the Institute and Faculty of Actuaries.

The report recorded that the Trust primarily invested in funds managed by UBS, in a range of asset classes including equities, index-linked and fixed interest bonds and cash, and it owns a subsidiary company which invests in commercial and residential property.

The valuation of the Trust assuming all plan holders died on 31 August 2016 showed value, after deferred tax liability, of £12.7m with a surplus of funds of £1.17m. The valuation results of a Central Scenario based on a set of likely future events valued the surplus at up to £3.00m.

The actuarial methodology based the calculation on the future liabilities of the costs of the funerals based on the number of funerals expected each year, and the expenses incurred in administering the Trust. The report made appropriate assumptions as to future inflation rates and investment returns for each class of investment, and made proper account of taxes likely to arise, and took account of mortality rates.

For the purposes of the valuation Mazars were given full access to all information as to plans and plan holders, and they target sample tested the data.

Article 60 of the RAO stipulates, ‘sums paid by the customer under the contract will be held on trust for the purpose of providing the funeral and that the following requirements will be met with respect to the trust‘:

  1. The trust must be established by a written instrument
  1. More than half the trustees must be unconnected with the provider.

None of Safe Hands’ directors or staff are in any way connected with the board of trustees, making it 100% independent. The Trust Fund is with Pitmans Trustees Ltd.

  1. The trustees must appoint an independent fund manager who is an authorised person who has permission to carry out an activity of the kind specified in article 37 of the RAO, and who is a person who is unconnected with the provider, to manage the assets of the trust.

The Safe Hands Trust Fund is managed by UBS – a multinational investment management firm, voted ‘Global Best Investment Bank’ at the Global Finance World’s Best Investment Banks Awards 2016.

  1. Annual accounts must be prepared and audited by a person who is eligible for appointment as a company auditor under Section 25 of the Companies Act 1989 with respect to the assets and liabilities of the trust.

Mazars, one of the UK’s largest accounting and auditing firms, have been appointed to audit the Safe Hands Trust Fund. They have already carried out the first audit (to April 2015) and will be undertaking the following year (to April 2016) imminently.

  1. The assets and liabilities must, at least once every three years, be determined, calculated and verified by an actuary who is a Fellow of the Institute of Actuaries or the Faculty of Actuaries.

Mazars have also been appointed as actuaries to the Safe Hands Trust. Although the initial actuarial report is not due until January 2017, it is expected to be complete and ready for publication by no later than November 2016.”