Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Deferred
We heard that only four providers, out of around 55 in total, have been proactive...
Conclusion
We heard that only four providers, out of around 55 in total, have been proactive and voluntarily worked in partnership with the Tracing Group—a commercial service for tracing the owners of dormant accounts—to set up a Child Trust Fund register separate to the one held by HMRC. The register contains details of around 60% of all Child Trust Funds and is proving to be an effective way for young people to trace their accounts. However, the Share Foundation told us that most account providers are not showing much enthusiasm for helping young people to trace their accounts.16 Access for young people lacking the mental capacity to manage their savings
Government Response Summary
The government agrees with the Committee's observation regarding provider proactivity in tracing accounts but states that CTF providers have the lead responsibility for tracing. HMRC will continue to encourage providers through a working group to adhere to their responsibilities under FCA rules, including the new consumer duty.
Government Response
Deferred
HM Government
Deferred
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 Child Trust Fund (CTF) providers have the lead responsibility in making sure account holders are aware of and have access to their accounts. 2.3 HMRC is an active participant in the dedicated CTF working group which comprises trade bodies such as The Investing and Saving Alliance and UK Finance, and CTF providers such as OneFamily and Nationwide Building Society. 2.4 As set out above, the need for CTF providers to trace, and engage with, account holders is an established feature of discussions. HMRC will continue to use these meetings to encourage further activity on the part of CTF providers, who are aware of their responsibilities to their customers under Financial Conduct Authority (FCA) rules. While terms and conditions are a matter for the industry, the new FCA consumer duty rules require firms to act to deliver good outcomes for retail customers and provide products and services which offer fair value. 2.5 HMRC also acts on any intelligence it receives from FCA or others regarding compliance problems with CTFs.