BNP Paribas Securities Services in the UK has developed the administrative capability to support clients managing Child Trust Funds, a new savings initiative by the British government.
Child Trust Funds (CTFs) are a Government initiative, in which the taxapayer starts saving on behalf of children by providing vouchers with a minimum value of £250 when a child is born, topping it up 7 years later with another £250, with the aim that every qualifying child has a savings account by the age of 18. A key part of the CTF is financial education and awareness for both the parent and child.
BNP Paribas Securities Services says it has developed the necessary systems and operational processes required to accept the Government vouchers and allow additional contributions by family and friends whilst monitoring the limits and reporting to the Inland Revenue.
The Child Trust Fund has required significant automation of processes and investment in technology integration in order to meet the Government reporting requirements and support the complexity of this product, says Sue Price, Head of Retail Product Development at BNP Paribas Securities Services in London. “This investment in the Child Trust Fund development further strengthens our retail administration capabilities and enables BNP Paribas to continue to provide its clients with market leading product flexibility,” she says.
BNP Paribas developed the service initially for an existing client, F&C. “We have now received and processed the first applications on behalf of F&C and we are delighted to be delivering this high quality service for the CTF initiative,” says Martin Ratcliffe, Head of Retail Operations for BNP Paribas at Peterborough.