Business & Finance
UK financial regulator launches review into unclaimed £1.5bn child trust funds
The Financial Conduct Authority is evaluating how 55 providers track down owners of roughly 760,000 mature, dormant accounts.
The short version
- The Financial Conduct Authority (FCA) initiated a review to ensure child trust fund providers actively trace account holders who have lost contact.
- Around 760,000 accounts valued at more than £1.5bn remain unclaimed, with an average balance of £2,000 per pot.
- The regulator is reviewing fee fairness and barriers for vulnerable savers, while cautioning people against paying third-party claims management services when accounts can be located for free through HMRC.
- The FCA plans to publish findings next year and could initiate enforcement actions if providers fail to meet standards.
Key facts
- The Financial Conduct Authority opened a market review requesting all 55 child trust fund providers to outline their efforts to locate missing account owners.[The Guardian]
- An estimated 760,000 child trust fund accounts totaling over £1.5bn—averaging £2,000 each—remain unclaimed.[The Guardian]
- The child trust fund initiative covered roughly 6.3 million children born between September 1, 2002, and January 2, 2011, with the accounts scheduled to mature through 2029.[The Guardian]
- The inquiry will evaluate provider charges under the 2023 consumer duty rules and assess access barriers for vulnerable individuals and their families.[The Guardian]
- The FCA warned savers that third-party claims management companies charge up to £400 or monthly subscription fees to locate accounts, despite the service being available for free via HMRC.[The Guardian]
What remains uncertain
- Whether the FCA will impose penalties or mandate operational changes on specific providers remains undetermined until the review concludes next year.[The Guardian]