Information about the Independent Funeral Standards Organisation

The National Association of Funeral Directors 

Throughout the CMA market investigation, the NAFD has made the case that the limitations of a voluntary regulation regime prevents the proper enforcement of transparency and quality standards in the funeral sector.

Funeral firms are currently not required to be inspected, nor to comply with a code of practice – they can only choose to do so to help demonstrate their commitment to doing the right thing by joining one of the two trade bodies (NAFD and SAIF) which require members to be inspected, comply with a code of practice and participate in a complaints and resolution scheme.

Even though the NAFD has strengthened its current voluntary regulation regime by adopting the Funeral Service Consumer Standards (FSCSR) industry-wide recommendations into the Funeral Director code of practice, in October 2020, given the voluntary nature of the current regime, where NAFD members do fall short of compliance, we still have only limited powers of sanction in response.

The NAFD therefore believes that we need regulation that is mandatory, is backed by the Government and has real ‘teeth’, but which is also proportionate, risk based and encourages best practice.

We therefore agree with the CMA’s proposal for the creation of a new industry regulator – but, given that the creation, management and funding of any new statutory regulator is always a significant, lengthy and expensive step for any Government (and the industry sector which ultimately bears the cost) it is important to be realistic.

If the same outcome could be achieved by strengthening an independent regulatory body already in existence – this would enable the Government to achieve the CMA’s proposed outcome much faster and more cost-effectively – benefiting both bereaved consumers and the funeral profession.

No such body currently exists, so the NAFD is creating one.

What is IFSO

The NAFD has begun establishment of the Independent Funeral Standards Organisation (IFSO) as an independent regulatory body, that will provide a robust mechanism to monitor quality standards among funeral firms. We proposed this to the CMA in January 2020 and have also shared our vision with key stakeholders across the sector.

IFSO will have its own Board of five members to govern regulatory activities, the majority of whom will not have had any current or prior connection with the funeral sector (i.e., they will be ‘lay members’ of the Board). IFSO Board members will not be involved in NAFD’s representational or advocacy functions or hold office at any other funeral-related trade body or professional body.

In the future, all NAFD inspections will be folded into the work of IFSO and, with an independent board, staff team and operating protocol, we are confident that it will satisfy the CMA’s recommendations and offer confidence to bereaved consumers that funeral directors are working to the highest possible standards.

IFSO will also be accessible to non NAFD members, for a fee, to provide all funeral firms with access to a quality standards inspections regime. It is hoped that the Government will ultimately invest IFSO with the statutory powers to ensure that all funeral firms are required to register.

The NAFD is covering the costs of setting up IFSO and operating its functions, A fee for IFSO registration will come into place next year and it is planned that the NAFD’s initial outlay will be repaid over time.

Why is the NAFD doing this?

We are creating IFSO for three reasons:

– To provide the Government with a viable solution to address the CMA’s (and our) concerns about the limitations of the current voluntary regulation of the funeral sector.
– To create a framework in which there can be meaningful consequences for funeral firms that breach quality standards.
– To provide an option for funeral firms who wish to demonstrate high standards/be inspected/have access to a complaints and resolution service – but don’t wish to be members of a trade association.