Advisers have welcomed Government plans to consult on the transfer of child trust funds to Junior Isas.
Children who have a CTF are currently ineligible for a Junior Isa. The consultation will look at the options of transferring savings in CTFs into Junior Isas, although no timeframe for the consultation has been revealed.
Chelsea Financial Services managing director Darius McDermott has been campaigning for the transfer of CTFs to Junior Isas and welcomes the plans for a consultation.
He says: “The Government seems to have finally seen sense and I hope they start this consultation sooner rather than later. I know a large number of our clients will be extremely happy to hear this news. We have been campaigning for this move, on their behalf, since Junior Isas were introduced.”
Charles Stanley head of investment research Ben Yearsley welcomes the prospect of the transfer, but does not see the need for a consultation.
He says: “The situation with CTFs has been a dead duck. They have been a poor choice of investment with very few providers, and are pretty much a waste of time, whereas Junior Isas are a good product.
“They are similar products so it should just be a case of changing the rules so CTFs become Junior Isas.”