This is a short post to clarify the question of who can open a JISA account (Junior ISA) on behalf of a child and who cannot. JISA accounts are available to children under the age of 18 years old.
The person who opens a JISA account, on behalf of the child, is known as the Registered Contact, and can make investment decisions in relation to the JISA account and choose to transfer the JISA to a different provider. Though they cannot make withdrawals.
The question is, who can become the Registered contact?
Parental Responsibility
HMRC’s guidelines state that the Registered contact can only be someone with parental responsibility for the child.
Generally, of course, this will be one of the child’s parents.
The Registered contact could also be a person granted parental responsibility by court order.
It could be someone who has legally adopted the child.
A local authority, where the child is in care.
The Share foundation, where the child has been in the care of a local authority for more than 12 months.
When the child turns 16 years old
From 16 years of age, a child can open a JISA account themselves and be the Registered contact for their JISA account.
This also means that a JISA account can be opened a person given appropriate authority within a Lasting power of attorney (LPA) for a child between the ages of 16 and 18 years old. The LPA must be registered with the Office of the public guardian (OPG).
The Share Foundation
The Share foundation is a government scheme which runs Child trust funds and Junior ISA accounts for children in care.
For the purposes of the JISA, the Share foundation will be the Registered contact.
Deputy appointed by the Court of Protection
There are cases where a child will have a deputy appointed by the Court of protection to handle the child’s financial affairs.
Unless that deputy also has been separately granted parental responsibility by the court, then they cannot open a JISA for the child and become the Registered contact.
The likely course of action for the deputy would be to contact the Share foundation.
Grandparents and other relatives
Other relatives of the child, who do not have legal parental responsibility, cannot open a JISA for the child and become the Registered contact.