The UK Financial Conduct Authority (FCA) has issued an urgent warning to young adults and parents to check for forgotten Child Trust Funds. Data from HMRC reveals that around 760,000 matured accounts, averaging £2,000 each, remain unclaimed. These savings pots were created for individuals born between September 2002 and January 2011. The regulator highlighted that third-party claims management firms are charging excessive fees—sometimes up to £400 or monthly subscriptions—to trace these accounts. The FCA stressed that individuals can locate and claim their accounts entirely for free using government resources, avoiding unnecessary deduction of their savings by commercial middlemen. Additionally, the FCA announced a broader market review into Child Trust Funds. The inquiry will focus on issues where account holders lose contact with providers upon turning 18, while ensuring financial firms deliver fair value under the Consumer Duty framework. The initiative underscores growing regulatory scrutiny over asset recovery and consumer protection.
