The Child Trust Funds (Amendment No. 2) Regulations 2006

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Child Trust Funds Regulations 2004 (S.I. 2004/1450). The principal effects of the amendments are to (a) revise the requirements for local authorities to notify H.M. Revenue and Customs of children who come to be looked after by the authority (b) to provide for an additional situation where the Official Solicitor will administer the CTF accounts of certain children and (c) to remove the requirement for providers to pay daily interest on cash deposits for a stakeholder account where the cash is held temporarily pending reinvestment (where the interest can be minimal in amount and an administrative burden).

Regulation 1 provides for citation and commencement, and regulation 2 for amendment of the Child Trust Funds Regulations 2004.

Regulation 3 adds an additional requirement to the details which local authorities are required to provide in their monthly returns, with respect to “looked after children;” which is details of the child’s mother (or failing that, father) to assist with identification of the child. There is an exception if the local authority considers the child’s situation to be particularly sensitive (for example, where the child’s identity or whereabouts is restricted information).

Regulation 4 extends the period (from the end of each “return period”) within which the local authority has to make its monthly returns, from five to ten days.

Regulation 5 sets out the additional circumstance in which the Official Solicitor will administer the CTF account of a child, which is where the child has been placed for adoption in England and Wales (or freed for adoption in Northern Ireland).

Regulation 6 removes the requirement for providers to pay daily interest on cash deposits for a stakeholder account where the cash is held temporarily on deposit while dealing in investments.

A Regulatory Impact Assessment has not been prepared for this instrument as it has no impact (exceeding the de minimis limit) on business, charities or voluntary bodies.