Providers rush JISA market as rules confirmed

Providers have rushed to enter the Junior ISA market after the government confirmed the regulations governing the product.

JISAs will replace the defunct Child Trust Funds (CTF) from 1 November. The main rules have now been confirmed, with the Treasury raising the limit from £3,000 to £3,600.

The following providers have all confirmed they will offer Junior ISAs from 1 November:

Fidelity says advisers will be able to offer clients JISAs through FundsNetwork, giving them access to over 1,200 funds from more than 70 providers.

Family Investments will offer its investment-based JISA from 1 November, with monthly premiums from £10. An ethical version will also be available.

JP Morgan Asset Management will offer consumers JISAs through WealthManager+, giving access to its full fund range.

Fundsmith will provide a JISA with no performance fees, initial fees or redemption fees, focusing exclusively on long term equity investment.

Prudential will be the fund manager in charge of delivering the active managed JISA for The Children's ISA. The product will have a minimum investment of £10.

JISAs: The rules

• All UK resident children under the age of 18 who do not have a CTF will be eligible for Junior ISAs.

• Any income or gains will be tax-free.

• Both cash and stocks and shares Junior ISAs will be available. Children will be able to hold up to one cash and one stocks and shares Junior ISA at a time (two accounts in total).

• There will be an overarching contribution limit of £3,600 per year which will be indexed by CPI from 6 April 2013 onwards.

• Accounts will be owned by the child and funds will be locked in until the child turns 18.

• Children will have the right to manage their accounts from age 16.

• Junior ISA accounts will by default become adult ISAs on maturity.