The Child Trust Funds Regulations 2004

Account provider—qualifications and Board’s approval U.K.

14.—(1) This regulation specifies the circumstances (“qualifying circumstances”) in which a person may be approved by the Board as an account provider.

(2) The qualifying circumstances are the following—

(a) the person must make an application to the Board for approval in a form specified by the Board;

(b) the person must undertake with the Board—

(i) to either offer stakeholder accounts to the general public (whether or not accounts of another description are offered), or to fulfil the requirements in paragraph (3),

(ii) to accept vouchers from any responsible person or the child if 16 or over (subject to [F1 paragraph (iia) and] regulation 13(8)),

[F2 (iia) in the case of a credit union, to accept vouchers from any responsible person or the child if 16 or over, if the child to which the voucher relates is a member, or fulfils or is treated as fulfilling a qualification for admission to membership, of the credit union (subject to regulation 13(8)),]

(iii) where the person accepts Revenue allocated accounts, to allow instructions for their management to be made or given by post (whether or not other methods are allowed),

(iv) to publicise (and up-date where appropriate) statements of the minimum amount which may be subscribed to an account on a single occasion, and the permitted means of payment of subscriptions,

(v) to inform persons proposing to make subscriptions to an account (other than the named child) that the subscription is a gift to the child,

(vi) to publicise (and up-date where appropriate) statements of the extent to which social, environmental or ethical decisions are taken into account in selecting, retaining or realising investments,

(vii) that a child’s unique reference number shall only be used for the purposes of the child’s account (and of fulfilling the requirements of these Regulations with regard to that account), and

(viii) that whether there is an initial contribution or special contribution to an account, whether there is a supplementary contribution to the account, and whether the account is a Revenue allocated account is information held for the purposes mentioned in paragraph (vii) only, and shall not be used for other purposes (including marketing other products);

F3 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) an account provider must be—

(i) an authorised person within the meaning of [F4 FISMA 2000], who has permission to carry on one or more of the activities specified in Articles 14, 21, 25, 37, 40, 45, 51, 53 and (in so far as it applies to any of those activities) 64 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M1 , but excluding any person falling within paragraph (iv) below;

[F5 [F6 (iia)] in the case of a credit union, an authorised person within the meaning of [F7 FISMA 2000], who has permission to carry on one or more of the activities specified in Article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;]

(ii) a European institution which carries on one or more of those activities;

(iii) a building society, [F8 or a person falling within section 991 of ITA 2007 (including for this purpose a credit union)]; or

(iv) an insurance company within the meaning given by section 431(2) of the Taxes Act, an incorporated friendly society or a registered friendly society, or any other assurance undertaking;

[F9 (e) an account provider must not be prevented from acting as such by any requirement imposed under Part 4A of FISMA 2000, or by any prohibition or prohibition order in or made under that Act; and]

(f) an account provider who—

(i) is a European institution or a relevant authorised person and who does not have a branch or business establishment in the United Kingdom, or has such a branch or business establishment but does not intend to carry out all his functions as an account provider at that branch or business establishment, or

(ii) falls within the expression “any other assurance undertaking” in sub-paragraph (d)(iv),

must fulfil one of the three requirements specified in regulation 15.

(3) The requirements in this paragraph are that the person provides to any potential applicant for a child trust fund ([F10 before commencement of completion of] any application under regulation 13)—

(a) a statement that a stakeholder account is available from a named alternative account provider who offers it on the terms in paragraph (2)(b)(i) (omitting the words from “, or to” to the end);

(b) a detailed description of that stakeholder account; and

(c) sufficient information (according to the method of communication used, and including documentation where appropriate) to put the potential applicant in the position to make an application to that alternative account provider, complying with regulation 13.

(4) The terms of the Board’s approval may include conditions designed to ensure that the provisions of these Regulations are satisfied.

Textual Amendments

F1 Words in reg. 14(2)(b)(ii) inserted (6.4.2005) by The Child Trust Funds (Amendment No. 2) Regulations 2005 (S.I. 2005/909), regs. 1, 6

F2 Reg. 14(2)(b)(iia) inserted (6.4.2005) by The Child Trust Funds (Amendment No. 2) Regulations 2005 (S.I. 2005/909), regs. 1, 7

F3 Reg. 14(2)(c) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Child Trust Funds (Amendment) Regulations 2013 (S.I. 2013/263), reg. 2(4)(c)

F4 Words in reg. 14(2)(d)(i) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 93(d)(i)

F5 Reg. 14(2)(d)(ia) inserted (6.4.2005) by The Child Trust Funds (Amendment No. 2) Regulations 2005 (S.I. 2005/909), regs. 1, 8

F6 Reg. 14(2)(d)(ia) renumbered as reg. 14(2)(d)(iia) (27.12.2005) by The Child Trust Funds (Amendment No. 3) Regulations 2005 (S.I. 2005/3349), regs. 1, 6

F7 Words in reg. 14(2)(d)(iia) substituted (1.9.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) (No. 3) Order 2013 (S.I. 2013/1765), arts. 1, 8

F8 Words in reg. 14(2)(d)(iii) substituted (6.4.2010) by The Child Trust Funds (Amendment) Regulations 2010 (S.I. 2010/582), regs. 1, 7(a)

F9 Reg. 14(2)(e) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 93(d)(ii)

F10 Words in reg. 14(3) substituted (6.4.2005) by The Child Trust Funds (Amendment) Regulations 2004 (S.I. 2004/2676), regs. 1, 10

Marginal Citations

M1 S.I. 2001/544.