The Serious Fraud Office (SFO) has launched a criminal investigation into a provider of pre-paid funeral plans.

Around 46,000 customers had paid towards funeral plans priced up to £4,000 before Wakefield-based Safe Hands Plans collapsed last year.

Administrators reported there was an estimated £70.5 million claimed by creditors.

The SFO announced the criminal probe would look into suspected fraud at the firm and its parent company SHP Capital Holdings Limited.

Nick Ephgrave, director of the SFO, sent notices to stockbrokers and financial institutions requesting information, following similar requests made to UK banks and other potential witnesses last month.

“Thousands of individuals from all corners of the UK lost peace and security after being sold a product on the basis it would help reduce the burden on their loved ones upon their death,” he said.

“Today, we have taken decisive next steps in our full criminal investigation into Safe Hands Plans.”

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Anyone affected by the Safe Hands collapse is being advised to continue liaising with administrators FRP Advisory.

The firm had been in discussions with the Financial Conduct Authority (FCA) ahead of the watchdog’s move to regulate pre-paid funeral plans from July last year.

But the company stopped taking new orders and withdrew its application for FCA authorisation in February.

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When Safe Hands collapsed last March, the administrators said their appointment “was made by the directors of the company, after a period of severe financial challenge, which has left the business unsustainable in its current form”.

“The company has ceased to trade insofar as it will not be accepting any new customers, but will be assisting current plan holders with contingency funeral planning services with the assistance of a third-party provider,” the statement added.

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