13B.—(1) On the 18th birthday of the holder of a child trust fund, where no instructions have been given under regulation 13A, all the investments under the child trust fund held immediately before that birthday are to be transferred by the account provider to a protected account held with the account provider.
(2) The protected account may be, at the option of the account provider, either—
(a)an account (“matured CTF account”) which is to be treated as a continuing account of the person who held the child trust fund (“account holder”) to be held subject to these regulations and otherwise on the same terms and conditions which applied immediately before the account holder’s 18th birthday as if the investments had remained in the account for the child trust fund; or
(b)an account, within the meaning of regulation 4 of the Individual Savings Account Regulations 1998, which is a cash account, in respect of investments which are held in cash, or a stocks and shares account, in respect of investments which are held as stocks or shares, to be held subject to those regulations and otherwise on the same terms and conditions which applied immediately before the account holder’s 18th birthday as if the investments had remained in the account for the child trust fund.
(3) Investments which are held otherwise than in cash are to be transferred in specie.
(4) In the terms and conditions mentioned in paragraph (2) and in these regulations references to the following howsoever described—
(a)“account” and “child trust fund” are to be read as including the protected account,
(b)“named child”, “eligible child” or “child” are to be read as the account holder of the protected account, and
(c)“registered contact” and “responsible person” are to be read as the account holder of the protected account where instructions, notifications, assessments, actions or decisions need to be made in relation to it.]
Textual Amendments
F1Regs. 13A-13C inserted (6.4.2020) by The Child Trust Funds (Amendment) Regulations 2020 (S.I. 2020/29), regs. 1(1), 6