The FSA has set out its proposals for the sales regime for Child Trust Funds to ensure that consumers have what they need to make properly informed decisions.
Firms offering CTFs will need to be authorised, have in place adequate systems and resources and will need to adopt appropriate levels of consumer protection.
All children born on or after September 1 2002 qualify for a CTF and will receive a government contribution of £250 with which to open the fund.
The closing date for comments on the consultation is September 3. The FSA plans to make its rules in October and bring them into force with immediate effect.