The impact of government regulations in the funeral sector around the Durban Metro.

Abstract

ABSTRACT According to a study conducted by the Centre for Financial Regulation and Inclusion, it was noted that there were different layers of informality within the funeral sector, perpetuated by various layers of regulations in respect of the health regulation, financial services regulation and the regulation that applies to small businesses. This suggested that the funeral industry was governed by many pieces of regulations legislated from different government departments. The statutory bodies which govern this sector were operating in silos as opposed to working jointly in an attempt to formally regulate the industry. The aim of this study was to investigate the level of awareness regarding the existing regulations governing the funeral sector, and the extent to which the funeral undertakers complied with the respective regulations. A secondary objective was to establish the nature of the impact caused by such regulations on funeral undertakers operating around the Durban Metro. The study revealed that the majority of participants are well aware of the various regulations imposed on funeral undertakers by different government departments. What was even more revealing was that the majority of participants that are aware of the various regulations are actually complying with them, and they recognise the importance of compliance. However, it would appear that there are still those funeral undertakers that are not compliant with various regulations, and thereby posing risks in the industry. When assessing the impact of the nonaligned legislation on funeral undertakers we received mixed feelings suggesting that participants are mindful of the fact that government can improve and grow this industry by producing coherent and aligned regulations to govern the funeral industry. The fact that there are many funeral undertakers operating without proper certification and licenses is proof that the regulations lack proper enforcement. The findings of this explorative study are a good indication that further studies are required to investigate the funeral industry. Future studies can aim at generating specific recommendations for best funeral industry practices.