FCA Reviews 55 Providers Over £1.5 Billion Unclaimed Funds

The Financial Conduct Authority has launched a review of 55 child trust fund providers to determine if they are treating savers fairly and actively working to reunite young people with lost accounts. Approximately 760,000 unclaimed accounts, totaling more than £1.5 billion, remain outstanding from a government scheme that operated between 2002 and 2011.

The regulator is examining whether banks, insurers, and fund managers are making sufficient efforts to trace customers and if fees remain fair under 2023 consumer duty rules. The agency warned consumers against using paid claims management companies, noting that some charge up to £400 for services that are available for free through HM Revenue & Customs.

Chris Knight, the director of insurance at the regulator, urged savers to avoid paying third parties to claim money that is rightfully theirs. The regulator expects to report its findings next year and may take action against providers if it identifies consumer harm.