Section 61: Management of child trust funds: children 16 or over
289.This section amends provisions in the Child Trust Funds Act 2004 (“CTFA”) concerning the authority to manage a CTF. It introduces flexibility to allow a person other than the child holding the account to manage a CTF once that child reaches the age of 16.
290.Subsection (2) amends the rules concerning authority to manage a CTF at section 3(6) of the CTFA, so that where a child does not elect to assume management of their account after they reach the age of 16, the account can be managed by either a person who is a responsible person in relation to the child, or by a person appointed under section 3(10) of the CTFA.
291.Sections 3(8) and 3(9) of the CTFA define ‘responsible person’ for the purposes of the CTFA, with reference to a person who has parental authority in relation to the child holding the CTF. Section 3(10) of the CTFA provides that HM Treasury may, by regulations, authorise the Official Solicitors of England and Wales and Northern Ireland, or the Accountant of Court in Scotland, to manage the CTFs of certain children under 16. Under the CTF Regulations, these bodies are authorised to manage the CTFs of certain children under the age of 16 who are looked after by local authorities.
292.Subsections (3) and (4) provide consequential amendments to section 3(8) and (10) of the CTFA to reflect the fact that it will be possible for a person other than the account holder to manage a CTF once a child has reached the age of 16.
293.The section forms part of the law of England and Wales, Scotland and Northern Ireland.
294.The section comes into force at the end of the period of 2 months beginning with the day on which the Act is passed.