The Financial Services Authority are monitoring Child Trust Fund providers, as they are concerned that they do not have adequate systems to deal with possible business volumes. Over 1.5 million children in the UK were eligible to open child trust funds when they were launched in April, and more than half have not invested the vouchers yet. The Financial Services Authority has identified some risks within several companies, and is following up these issues directly with the firms involved.
Our view
As ever some providers will under resource processing departments for profit margins. The FSA is right to monitor their success.