The Serious Fraud Office (SFO) has charged two men in connection with the collapse of Safe Hands, a pre-paid funeral firm that left 46,000 customers out of pocket. Richard Wells, 39, and Neil Debenham, 43, are accused of conspiracy to defraud and will appear in court on 5 February. The charges mark a critical step in the SFO’s investigation into the firm’s 2022 collapse, which occurred just months before new financial regulations took effect.
Immediate Action & Core Facts
The SFO announced charges against Wells, a former director of Safe Hands’ parent company, SHP Capital Holdings, and Debenham, a senior executive. The collapse left customers with minimal refunds—about 4p per pound—from their pre-paid funeral plans, totaling an estimated £70.6 million in unpaid claims. The firm failed to secure regulatory approval before the UK’s Financial Conduct Authority (FCA) imposed new rules in July 2022.
Deeper Dive & Context
Background on the Collapse
Safe Hands was one of dozens of unregulated funeral plan providers operating before the FCA’s 2022 reforms. The firm went into administration in 2022, unable to cover funeral costs for its customers. Administrators initially projected refunds of 8.5p–12.5p per pound, but delays reduced payouts to just 4p per pound by mid-2025.
Regulatory Changes and Industry Impact
The collapse highlighted gaps in oversight before the FCA’s intervention. Since 2022, pre-paid funeral providers must obtain FCA approval to operate. The SFO’s investigation, launched in 2023, focuses on whether Safe Hands misled customers or failed to secure necessary approvals. The charges allege the firm marketed plans as secure, leaving vulnerable customers exposed.
Customer Reactions and Next Steps
Customers like Denise Hudson of Derby are among those affected, with no clear timeline for full compensation. The SFO’s charges may set a precedent for accountability in the funeral planning industry. The case is scheduled for Westminster Magistrates’ Court on 5 February.