Child Trust Fund (CTF) Maturity Working Group

Improving the reputation and effectiveness of the financial service industry through better engagement with consumers

Industry challenge

The first children with a Child Trust Fund (CTF) product reached the age of 18 in September 2020 and were entitled to receive and take action on the maturity proceeds. The regulations, industry and publicity needed to be in place for this.

The 2015 regulations were changed to confirm that the proceeds of a matured CTF would be protected. However, the regulations needed to be detailed and the processes put in place in order that the account held was able to either take the proceeds or reinvest them into an adult ISA should they wish. This needed to be completed by September 2020 when the first CTFs matured. In addition, publicity was needed to raise the profile of those that hold a CTF, particularly those in care who could benefit most from the proceeds.

Group purpose

The Child Trust Fund (CTF) Maturity Working Group aims to improve the reputation and effectiveness of the financial service industry through better engagement with consumers and promoting their interests.

Areas of focus

  • Improving consumer access to financial guidance
  • Ensuring vulnerable customers receive appropriate care
  • Re-establishing a culture of savings amongst young people
  • TISA continues to liaise with the Ministry of Justice (MoJ) regarding the difficulties that some parents face when attempting to access the matured CTF funds where their child is lacking capacity and where no Court of Protection (COP) order is in place
  • CTF providers now have access to a new Parent/Carer Toolkit which will help parents/carers of children with mental incapacity concerns understand how best to look after the financial needs of the child
  • TISA has issued new documentation/wording in conjunction with the Ministry of Justice (MoJ) to help ensure that parents/carers with children who may lack capacity, are aware of the options available to them where there is a maturing CTF
  • TISA continues to work with the Share Foundation to help launch a CTF conference in March 2024 with the goal of helping children locate their lost CTFs

Group strategy

Goal/s:  Originally to have effective regulations in place and matching processes before the first maturities in September 2020 which was achieved – the current goal is to ensure mechanisms are in place to ensure account holder can gain access.

Participating member firms

Columbia Threadneedle Fund Management Limited
Co-operative Banking Group
Coutts & Co
Forester Life
Hargreaves Lansdown
HM Revenue & Customs
HSBC
Lloyds Banking Group

OneFamily
Santander UK Plc
Skipton Building Society
SS&C
Suffolk Building Society
The Tracing Group
Walker Crips
Yorkshire Building Society

David Beaston, Technical Manager/Trainer leads on this work

If you are a member who would like to get involved with this work, please get in touch

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