The Child Trust Funds (Amendment) (No. 2) Regulations 2024

Amendment of regulation 8

3.  In regulation 8 (general requirements for accounts)(1), in paragraph (2)—

(a) after sub-paragraph (a) insert—

“(aa) where the account investments are fractional interests—

(i) the requirement under sub-paragraph (a) applies in relation to the beneficial ownership of the whole share in which the named child holds a fractional interest, and

(ii) the beneficial interest held by the named child shall be in proportion to the fractional interest in the whole share;”;

(b) in sub-paragraph (b), after “except” insert “in relation to a fractional interest and”;

(c) after sub-paragraph (b) insert—

“(ba) investments in fractional interests are treated as meeting the requirements of sub-paragraph (b) if (and only if) the title to the whole share in which the named child holds a fractional interest meets the requirements of that sub-paragraph;”;

(d) after paragraph (e) insert—

“(ea) in relation to investments in fractional interests, where the named child holds more than one fractional interest in relation to the same investment, the aggregated value of which amounts to at least one whole share (an “aggregated whole share”)—

(i) the obligations under sub-paragraphs (d) and (e) apply to the manager in relation to the named child who holds the aggregated whole share, and

(ii) the aggregated whole share is subject to the requirements in sub-paragraphs (b) and (c);”.

(1)

Paragraph (2) of regulation 8 was amended by S.I. 2004/2676 and 2015/876.