Child trust fund firms face review over efforts to find who owns £1.5bn worth of pots
Exclusive: FCA pressures firms to do more to sort 760,000 accounts as watchdog urges families to use free tracking service Child trust fund providers are being put under the spotlight to check they are treating savers fairly and doing all they can to reunite young people with lost accounts. The Financial Conduct Authority (FCA) said about 760,000 accounts worth an average of £2,000 were yet to be…
The Financial Conduct Authority (FCA) is conducting a review of child trust fund providers due to concerns over the treatment of savers and efforts to locate missing accounts. Approximately 760,000 accounts, valued at an average of £2,000 each, remain unclaimed, totaling over £1.5 billion. The review aims to ensure that firms are treating customers fairly, providing fair value, and supporting vulnerable consumers and their families.
The FCA urges parents and young adults to use a free checking service to locate any forgotten funds, as tracing and accessing accounts is free through HMRC. FCA director Chris Knight emphasized that consumers should not pay claims management companies to locate their funds, as it can cost up to £400 or more. The review will assess the barriers faced by parents and guardians of vulnerable people in accessing their money and look into how firms are checking for fair charges and fees following the introduction of the consumer duty in 2023. The regulator plans to report back next year and may take action against providers if necessary.
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