Major platforms to miss JISA roll-out

Only a handful of platforms will be ready for the 1 November launch of Junior ISAs, with a number confirming they have no current plans to offer the products.

The new form of savings will replace Child Trust Funds (CTFs) from the beginning of next month, with HMRC estimating six million children will be immediately eligible for them and a further 800,000 per year after that.

However, of the major platforms, only Fidelity Fundsnetwork and Transact will be prepared for the launch, while Cofunds said it will follow suit a week later.

Niche provider Avalon will also be ready for the 1 November launch and founder Harry Kerr explained why he believed some of the bigger players were unable to do the same.

He said: “The fact the rules didn’t come around until July meant there was not enough time for some of them. If you want to make sure advisers are fully armed, you should aim to automatically have [Junior ISAs] on day one.”

Meanwhile, Transact head of marketing Malcolm Murray was enthusiastic about the new form of savings vehicles.

“Quite a lot of our advisers have been asking about them and there will be demand because they are more appealing than CTFs,” he said.

Among the providers steering clear of JISAs for now are Novia, Skandia and Aviva, while the likes of Standard Life and Nucleus are looking to roll them out at some point next year.

Danny Cox, head of advice at Hargreaves Lansdown, was surprised by the failure of some of the major platforms and banks to be ready for the launch, particularly given the strength of interest from the public.

He said: “Thousands have registered for updates with us and the Treasury estimates 1.2 million will be taken out in the first year. It’s got the potential to be a fantastically successful product.”