The Child Trust Funds Regulations 2004

Account provider—qualifications and Board’s approval

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 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);

(c) the person must demonstrate to the satisfaction of the Board that the person can correctly operate the procedures in regulation 30;

(d) an account provider must be—

(i) an authorised person within the meaning of section 31(1)(a) or (c) of, or Schedule 5 to, the Financial Services and Markets Act 2000(1), 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(2), but excluding any person falling within paragraph (iv) below;

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

(iii) a building society, a person falling within section 840A(1)(b) of the Taxes Act(3) or a relevant European institution; 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;

(e) an account provider must not be prevented from acting as such by any requirement imposed under section 43 of the Financial Services and Markets Act 2000, or by any prohibition imposed by or under any rules made by the Financial Services Authority 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 (prior to discussing 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.

(1)

2000 c. 8.

(2)

S.I. 2001/544.

(3)

1988 c. 1; section 840A was inserted by paragraph 1(1) of Schedule 37 to the Finance Act 1996 (c. 8).