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FCA launches review of child trust fund firms’ account tracing
The watchdog said about 760,000 unclaimed child trust fund accounts are worth more than £1.5 billion total, with an average value of £2,000 each.
The UK Financial Conduct Authority has launched a review into child trust fund providers over how effectively they are trying to reconnect savers with unclaimed accounts, according to the Guardian Business.
The FCA said around 760,000 accounts opened under the government scheme remain unclaimed, totaling more than £1.5 billion and averaging about £2,000 per pot. The regulator is asking firms to explain what they have done to trace customers who have lost contact with their accounts.
The scheme covered about 6.3 million children born between 1 September 2002 and 2 January 2011, with at least £250 provided for each child and encouragement for families to contribute. The program closed in 2011, and the accounts will continue to mature until owners turn 18, which for this group runs through 2019.
The FCA said it will review whether banks, insurers, and fund managers are active enough in tracking customers and also examine barriers that may prevent parents or guardians of vulnerable people from accessing money. It will additionally look at whether firms’ charges and fees are fair following the consumer duty introduced in 2023.