The Financial Conduct Authority has launched a review of Child Trust Funds and urged eligible young adults to trace unclaimed savings directly rather than pay third-party firms. HM Revenue and Customs figures show that 760,000 matured accounts remain unclaimed, with an average value of GBP 2,000. The review will examine how firms contact account holders when they turn 18, deliver fair value under the Consumer Duty and address barriers faced by vulnerable young adults. The FCA has identified tracing firms charging customers as much as GBP 400 or imposing monthly subscriptions, although HMRC offers a free tracing service. Because tracing is not generally an FCA-regulated activity, fee caps may not apply and customers may be unable to refer complaints to the Financial Ombudsman Service. The FCA expects to report on the review in 2027.
2026-09-01Financial Conduct Authority
UK Financial Conduct Authority launches Child Trust Fund review as 760,000 matured accounts remain unclaimed
The Financial Conduct Authority has launched a review of Child Trust Funds as 760,000 matured accounts, worth GBP 2,000 on average, remain unclaimed. It will assess customer contact, fair value and access barriers, and has warned that accounts can be traced free through HMRC instead of through firms charging substantial fees. The review will report in 2027.