SAFE HANDS PLANS LIMITED
(IN ADMINISTRATION)
(“THE COMPANY”)

Nedim Ailyan and Ben Stanyon were appointed as Joint Administrators of the Company on 23 March 2022, in accordance with Paragraph 46(3) of Schedule B1 of the Insolvency Act 1986.

The appointment of the Joint Administrators was made by the directors of the Company, after a period of severe financial challenge, which left the business unsustainable. The Company has ceased to trade insofar as it will not be accepting any new customers but will be assisting current plan holders with the process of purchasing a new discounted plan with a third-party provider and registering claims in the Administration process.

Option to purchase a new discounted funeral plan

The Administrators wrote to all plan holders on 19 September 2022 with details of discounted funeral plan offers from Dignity Funerals (“Dignity”) and Co-op Funeralcare (“Co-op), two regulated funeral plan providers together with details as to how a new discounted plan could be purchased. A copy of the letter is also available at https://creditors.frpadvisory.com You will be asked to enter the following credentials to log in to the portal.

Login:               S2902ORP

Unique ID:        S2902ORP

Plan holder consent forms

Plan holders with an interest in purchasing a discounted funeral plan from Dignity and/or Co-op were asked to return a consent form to the Administrators by 19 December 2022, the deadline for which has now passed. The Administrators will not be in a position to handle any consent forms received going forwards.

Contact from the selected provider in order to purchase a new discounted plan

The Administrators have already provided information to both Dignity and Co-op relating to plan holders that have expressed an interest in purchasing a discounted funeral plan. The information transfer process remains ongoing due to the volume of consent forms received. The process is expected to be completed by the end of January 2023.

The Administrators understand that Dignity and Co-op will contact plan holders who returned their consent forms as soon as reasonably practicable to discuss their offer of a new discounted plan. The Administrators cannot confirm on the exact timing of such contact as this is within the control of Dignity and Co-op and would kindly ask plan holders to remain patient as Dignity and Co-op work through the information.

Both Dignity and Co-op have agreed to make available the offer a new discounted plan to the next of kin of a deceased plan holder in the circumstances where their passing has occurred prior to them purchasing a new discounted plan.

Interim funeral service provision

The interim funeral service provided by Dignity ceased on 31 October 2022. From 1 November 2022 plan holders would have to make alternative funeral arrangements.

Claims process 

The Administrators encourage all plan holders who have not already received a refund to complete and return a proof of debt form, which was enclosed with the Administrators’ letter of 19 September 2022 in accordance with the instructions in the letter. A copy of the form can also be found here.

The Administrators politely request that plan holders refrain from asking the Administrators to confirm receipt of proof of debt forms as this will add significant administrative burden to the Administrators’ team and will ultimately add to the cost of the process.  To confirm, all known plan holders who have not submitted a claim in the Administration will be notified, prior to any distribution being made to ensure that all claimants have been captured.

In the interim, the Administrators will keep plan holders updated with the claims adjudication process via this website or through written communication, including future progress reports.  To confirm, however, the date of a distribution to plan holders is currently uncertain, as there are numerous avenues of recovery still being explored by the Administrators, some of which may take some time to resolve.

Customer service team & frequently asked questions (“FAQ’s)

The dedicated UK based customer service and freephone helpline closed on 23 December 2022.

However, telephone enquiries can be made to 0844 257 5562, which will enable you to leave a voice mail message only. The Administrators’ staff will then endeavour to respond to your voice mail message in a timely fashion.

Please note that the time costs incurred by the Administrators’ staff in reviewing and responding to such messages will, subject to Court approval, be deducted from the assets from within the Safe Hands Plans Trust, which would deplete the amount of the subsequent distribution of funds within the trust to plan holders.

Accordingly, before calling, the Administrators would encourage you to review up to date information concerning the Administration which is available on the Safe Hands Plans website at https://www.safehandsplans.co.uk/ in case the information contained on the website and the FAQ’s answers your query.

You can also contact the Administrators’ office by email to safehands@frpadvisory.com

Update Customer FAQs – December 2022

Who should I contact if the FAQ doesn’t answer my question?

CONTACT DETAILS

Website: www.safehandsplans.co.uk

Administrators’ email: safehands@frpadvisory.com

Please contact us using the contact details above if you have any questions that are not answered in this FAQ document. Updates will, however, be provided to plan holders on a periodic basis via the Company’s website www.safehandsplans.co.uk and in the Administrators’ future reports to creditors.

What has happened to Safe Hands Plans?

The Company entered Administration on 23 March 2022, with Nedim Ailyan and Ben Stanyon of FRP Advisory Trading Limited (“FRP”) being appointed as Joint Administrators (“the Administrators”). 

The Company entered financial difficulty due to a combination of factors, some of which are understood to be linked to the Covid-19 pandemic. The value of the Company’s assets are significantly lower than the Company’s liabilities which means that the Company is insolvent.

The Administrators have been conducting a detailed investigation into the failure of the business, including the reasons behind it and the conduct of the Company’s directors.  Progress on this front will be communicated to creditors as and when appropriate, however, plan holders should note that elements of this process will need to remain confidential.

How does the Administration affect my funeral plan?

As a result of the Administration appointment, the Company ceased to trade and will no longer be offering funeral plans to customers and is not in a position to honour existing funeral plan contracts.

Dignity Funerals have kindly been providing funerals to plan holders that have passed away since the commencement of the Company’s administration and agreed to do this for plan holders that passed away up until the end of October 2022. After this date no further funerals under any funeral plan contracts issued by the Company will be provided.

What will happen if I or my loved ones want to utilise my plan after the end of October 2022?

Unfortunately, alternative funeral arrangements will have to be made by plan holders from 1 November 2022. However, plan holders were given the option to purchase another discounted plan (see below).

What has happened to my money?

Plan holder contributions have been used by the Company to acquire investments, subject to deductions for the costs of administering the funeral plans. Investments comprised a combination of equities, bonds, cash, real estate and loans which the Administrators are in the process of realising for the benefit of plan holders.

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.

The Administrators are in the process of conducting a thorough investigation into the shortfall as part of their duties. This investigation takes time as there are a number of parties and complex transactions that are being investigated, some of which involve parties that are not based in the UK.

Can I bring a claim for the losses suffered as a result of the Company’s Administration?

Yes.  The Administrators encourage all plan holders who have not already received a refund to complete and return a proof of debt form, which was enclosed with the Administrators’ letter of 19 September 2022 in accordance with the instructions in the letter. A copy of the form can also be found on the Company’s website https://www.safehandsplans.co.uk/ .

Is there another funeral plan provider that is willing to take on my plan?

The Administrators have been taking various steps to protect the interests of the Company’s plan holders. One of these steps has been to try to find one or more reputable funeral plan providers willing to take on the Company’s funeral plan contracts, so that plan holders receive a funeral that is equivalent, or similar to, the funeral that they were due to receive under their existing funeral plan contract with the Company.

It has not been possible to find a provider to take on the Company’s existing funeral plan contracts due, primarily, to the extremely high cost of providing funerals to all of the Company’s plan holders under the existing contracts. However, the leading funeral plan providers and the Financial Conduct Authority (FCA) have been keen to find an alternative option for plan holders, if at all possible, and there has been extensive all parties engagement in this regard to find a solution. 

In this regard, the Administrators confirm that two leading national funeral providers each agreed to offer discounted funeral plans for the Company’s existing plan holders to purchase. Those two providers are Dignity Funerals (“Dignity”) and Co-op Funeralcare (“Co-op).

What are the terms of the funeral plans provided by Dignity and Co-op?

The discounted plans offered by Dignity and Co-op are exclusive to existing customers of the Company and were included within the Administrators’ letter of 19 September 2022, sent to all plan holders. A copy of this letter is available on the creditors’ portal for the Administration at https://creditors.frpadvisory.com/.

What do I need to do if I want to take-up or learn more about the new discounted plans offered by with Dignity and Co-op?

Plan holders should refer to the Administrators’ letter, sent to all plan holders, of 19 September 2022 for further details and return the consent form included with the letter to the Administrators.  Return of the form by 19 December 2022 was required in order that the Administrators can share a plan holder’s details with the selected provider(s).

Following return of the consent form by 19 December 2022, plan holder details could then be passed on to the selected provider(s), who will contact plan holders directly to answer any questions and, if applicable, to progress applications for the new discounted plan. 

To confirm, the Administrators have been undertaking a verification process prior to personal details being passed to the provider(s) to ensure that only existing customers of the Company are provided the opportunity of the exclusive discounted plans.

Plan holders who want to register their interest were required to return their completed Consent Form to the Administrators by post or email by no later than 19 December 2022 (3 months from the date of the Administrators’ letter).

What if I missed the 19 December 2022 deadline?

The Administrators will not be in a position to handle any consent forms received after the deadline of 19 December 2022 but will continue processing consent forms received prior to the deadline.

The Administrators have already provided information to both Dignity and Co-op relating to plan holders that have expressed an interest in purchasing a discounted funeral plan. The information transfer process remains ongoing due to the volume of consent forms received. The process is expected to be completed by the end of January 2023.

The Administrators understand that Dignity and Co-op will contact plan holders who returned their consent forms as soon as reasonably practicable to discuss a new discounted plan. The Administrators cannot confirm on the exact timing of such contact as this is within the control of Dignity and Co-op and would kindly ask plan holders to remain patient as Dignity and Co-op work through the information.

Both Dignity and Co-op have agreed to make available the offer a new discounted plan to the next of kin of a deceased plan holder in the circumstances where their passing has occurred prior to them purchasing a new discounted plan.

Will I receive advice from the Administrators in respect of the purchase of a new funeral plan with Dignity and/or Co-op?

The Administrators gave plan holders the option of selecting a new discounted plan, but the Administrators are not able to recommend that plan holders purchase a discounted funeral plan or any other funeral plan. The choice whether to take-up the offer is entirely that of the plan holder concerned.

The Administrators encourage plan holders, therefore, to seek their own independent advice.

Do I have to purchase a new plan from Dignity and/or Co-op?

There is no obligation on plan holders to purchase a new discounted plan.

Can I still claim in the Administration if I purchase a new plan from Dignity and/or Co-op?

Yes, you will be entitled to prove as a creditor in the Administration for the entire amount that you paid for your Safe Hands funeral plan unless you have received a refund.

What happens if I have received money back from my bank/credit card provider or had a refund prior to the Administration?

Any plan holders that have received all, or an element of, their contributions to their funeral plan back via their credit card provider/bank will not be entitled to claim this sum again and will not be entitled to purchase a new discounted plan with Dignity or Co-op.

This will also apply to any plan holders that may have received refunds before the Company entered administration.

I am the personal representative of a Safe Hands plan holder who passed away and who received a funeral from Dignity after the commencement of the administration. Does the deceased estate still have a claim to the trust assets?

The deceased estate of any plan holder that received a funeral from Dignity after the commencement of the administration but prior to 31 October 2022 does not have a claim to the trust assets.

When will I receive a payment from the Administrators in respect of the debt owed to me by the Company?

A distribution of funds is expected to be paid to plan holders in proportion to their claims, but plan holders will not receive a full refund of the amounts they have paid as there is not enough money in the Safe Hands Plans trust to pay a full refund.

At present, the Administrators are unable to confirm when this distribution will be made but plan holders will receive a further notification when the Administrators are in a position to make the distribution to plan holders.

What is the status of the Administration and when can I expect a more general update?

The Administrators are required to provide a detailed progress report to creditors of the Company every six months. The first report, which has been issued, covers the period from 23 March 2022 to 22 September 2022.

This report and subsequent reports will be uploaded to the creditor’s portal for the Administration at https://creditors.frpadvisory.com/ for plan holders to access.

Hard copy reports will be issued to plan holders where specifically requested, however, the Administrators encourage plan holders to view the report via electronic means due to the cost of posting the documentation, which will reduce the amount available to plan holders at the point when a distribution is made.

What information is included in the Administrators’ progress reports?

Progress reports will include information on the following:

  • A general update on the status of the Administration, steps taken to date and further work that needs to be undertaken.
  • Steps taken by the Administrators to realise investments for the benefit of plan holders and the progress of the same.
  • Progress made in respect of the Administrators’ investigations into the affairs of the Company into the lead up to the Administration, as can be legally divulged.
  • An update on the current and estimated future costs of the Administration process, which plan holders will note are subject to approval by the court.
  • The estimated future return to plan holders.

When will the Administration end?

The Administration is currently due to end automatically on 23 March 2023 as this will be 12 months from the date of appointment of the Administrators. This period can be extended with consent of the creditors for up to 12 months or longer by application to the Court as required.

The Administrators anticipate the administration will be extended to give additional time to fulfil their duties given the complex nature of the assignment.

Was the Company regulated by the FCA?

The Company was not regulated by the FCA, however, from 29 July 2022, the pre-paid funeral plans sector came under FCA regulation. Dignity and Co-op are regulated by the FCA.

What should I do if I am contacted by someone claiming to be from Safe Hands Plans Limited / FRP Advisory / Dignity / Co-op?

If you are called by someone claiming to be from Safe Hands Plans Limited or FRP Advisory, please end the call and contact us using the contact details provided below. Plan holders that consent to their personal data being released to Dignity and/or Co-op in respect of a new discounted plan should expect direct contact from Dignity and/or Co-op in that regard but should remain alert to the possibility of fraud.

Website: www.safehandsplans.co.uk

Administrators’ email: safehands@frpadvisory.com