The Financial Conduct Authority (FCA) has initiated a formal review of firms managing Child Trust Funds (CTFs) to determine if providers are doing enough to reunite account holders with their money. Currently, there are roughly 760,000 unclaimed accounts, with an average balance of £2,000 per pot, totaling approximately £1.5 billion in dormant assets.

These accounts were established for children born between September 2002 and January 2011, a period during which the government provided initial funding for every child born in the UK. The regulator is concerned that some firms may not be taking sufficient steps to track down the young adults who are now entitled to these funds. As part of the review, the FCA is emphasizing the importance of fair treatment for savers and is encouraging both parents and young adults to utilize the government’s free online checking service to see if they have a forgotten account.

The review comes as part of a broader effort by the regulator to ensure that financial institutions are not profiting from or neglecting inactive accounts. While the FCA has not yet released findings on specific firms, the investigation signals a shift toward stricter oversight of how these legacy accounts are managed. Providers are expected to demonstrate that they have robust systems in place to maintain contact with account holders as they reach the age of maturity.