Child trust fund firms face review over efforts to find who owns £1.5bn worth of pots
Summary
The Financial Conduct Authority (FCA) is reviewing child trust fund providers to see if they are helping savers find and access their accounts. About £1.5 billion in unclaimed funds remain, and the FCA wants firms to make sure fees are fair and vulnerable people get support.Key Facts
- Around 760,000 child trust fund accounts, worth about £1.5 billion, are unclaimed.
- The child trust fund scheme started for children born between 2002 and 2011 to encourage saving.
- Families received at least £250 from the government for each child’s account.
- The FCA wants banks, insurers, and fund managers to do more to find customers who lost contact with their accounts.
- The FCA warned against paying expensive fees to companies that offer to find lost funds, since this service is free through HMRC.
- The review will check if fees and charges are fair under a 2023 consumer duty rule requiring good customer outcomes.
- Some providers will face more detailed questions if they hold large shares of the market or if there are signs of problems.
- The FCA will report its findings next year and may take action against providers if needed.
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