Child Trust Fund (CTF) Maturity Working Group

Child Trust Fund (CTF) Maturity Working Group

Purpose

The first children with a Child Trust Fund (CTF) product reached 18 in September 2020 and were entitled to receive and take action on the maturity proceeds. The regulations were changed to confirm that the proceeds would be protected however the detail and processes put in place needed to allow the proceeds to be taken or reinvested into an adult ISA. Publicity was needed to raise the profile of holders and particularly those in care who could benefit most from the proceeds.

Areas of focus

The Group has produced a ‘best practice’ document for the industry to use as a guide in reducing ‘gone aways’ for CTF accounts.

Work continues to develop best practice.

Nigel Banfield, Technical Policy Manager (Cash Savings) leads on this work at TISA

Benefits to the consumer


A GENERATION OF YOUNG ADULTS BEING ABLE TO GET A START IN THEIR ADULT LIFE

INCREASED PUBLICITY TO ENABLE ACCOUNT HOLDERS TO REUNITE WITH THEIR ACCOUNTS

Benefits to the industry


FIRMS HAVE CONTRIBUTED TOWARDS THE REGULATIONS AND PROCESSES, AND RAISED AREAS OF CONCERN DURING THE DEVELOPMENT PROCESS

FACILITATED BY TISA, REGULAR CALLS DURING THE COVID-19 CRISIS HELPED PROVIDERS MANAGE EXPECTATIONS AND REDUCE CONCERNS OVER DELIVERY TIMESCALES AND RESOURCE AVAILABILITY

Benefits to policymakers


A COLLABORATIVE APPROACH WITH HMRC AND THE FCA HAS LED TO A SMOOTH DEVELOPMENT, CONSULTATION AND PUBLICATION PROCESS WITH ISSUES RAISED AND RESOLVED ALONG THE WAY

Participating member firms

BMO Global Asset Management

Cambridge Building Society

Co-operative Banking Group

Coutts & Co

Forester Life

Hargreaves Lansdown

HMRC

HSBC

Ipswich Building Society

Kingston Unity Friendly Society

Lloyds Banking Group

Nationwide

OneFamily

Santander UK Plc

Skipton Building Society

SS&C

The Share Centre Ltd

Unity Mutual

Yorkshire Building Society

Children’s Savings

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If you are a TISA member, and would like to get involved with the CTF work, please get in touch

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