Explanatory note

These Regulations amend the Child Trust Funds Regulations 2004 (S.I. 2004/1450). The principal effect of the amendments is to allow Credit Unions to act as a provider of child trust funds provided they are authorised persons under the Financial Services and Markets Act 2000. There is a small supplementary reduction in the information requirements placed on CTF providers.

Regulation 1 provides for citation and commencement.

Regulation 4 provides that Credit Unions may be deposit-takers for the purposes of Child Trust Funds and regulation 5 makes a corresponding extension to the qualifying investments for CTFs .

Regulations 6 and 7 provide that Credit Unions applying to be providers of Child Trust Funds must accept CTF vouchers from a responsible person or child who is 16, only where the child is a member or is treated as fulfilling the qualifications for admission to membership of the Credit Union.

Regulation 8 allows Credit Unions to act as a provider of child trust funds provided they are authorised persons under the Financial Services and Markets Act 2000.

Regulation 9 makes a simplifying amendment to the items of information required in the annual information return which CTF providers have to submit within 60 days of the end of each tax year (the first such return will be due after 6th April 2006).

A full Regulatory Impact Assessment was prepared for the introduction to Parliament of the Child Trust Funds Bill (which became the Child Trust Funds Act 2004) in November 2003.