FCA launches review of child trust fund providers over unclaimed £1.5bn
The Financial Conduct Authority is examining whether child trust fund firms are actively locating owners of roughly 760,000 unclaimed accounts worth about £1.5 billion.
The UK regulator, the Financial Conduct Authority, has opened a market-wide review of child trust fund providers to ensure they are doing enough to reunite savers with unclaimed pots. Approximately 760,000 accounts, totalling more than £1.5 billion, have yet to be claimed, according to the FCA. All 55 firms that manage these funds will be required to explain how they locate customers who have lost contact with their accounts and how they apply the consumer-duty rules on fees and charges.
The review will also consider obstacles faced by parents and guardians of vulnerable people in accessing the money. The regulator plans to publish its findings next year and may take action against firms that fall short.
Why it matters
Millions of pounds could remain inaccessible to young people unless providers improve efforts to locate unclaimed child trust funds.
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