The Financial Conduct Authority has launched a review of child trust fund providers to check they are doing enough to reunite young people with lost savings accounts, after finding around 760,000 accounts worth over £1.5bn in total remain unclaimed. The regulator will require all 55 providers to explain what steps they are taking to trace lost customers, examine barriers faced by vulnerable savers and their families, and assess whether fees charged since the 2023 consumer duty rules represent fair value. The move matters because it puts pressure on banks, insurers and fund managers to actively help savers access money that is rightfully theirs, rather than leaving it dormant.

Roughly 6.3 million children born between September 2002 and January 2011 had accounts opened for them under the now-closed government scheme, with families given at least £250 to start saving; the last accounts will mature by 2029. The FCA also warned against claims management firms charging up to £400, or ongoing subscriptions, to trace accounts that can be found for free via HMRC, and said it may take enforcement action against providers if the review, due to report next year, uncovers problems.