Kevin Brown, Savings Specialist at Scottish Friendly, comments on the need for JISA rules to be relaxed, so that wider family members can open accounts on behalf of children that aren't their own.

Over a third (36%) of UK adults would set up a Junior ISA (JISA) on behalf of their grandchild, nephew, or niece if JISA rules were relaxed, according to findings from Scottish Friendly’s Family Finance Tracker. 

However, as they currently stand, JISA rules prohibit anyone other than a parent or legal guardian from setting up JISAs. 

Kevin Brown, Savings Specialist at Scottish Friendly, explains:

Family life is turned on its head with the arrival of a new baby. As parents and guardians contend with the immediate and pressing priorities of caring for very young children, things like setting up a Junior ISA can get put on the ‘deal with later’ list.

That is completely understandable, but it is also precisely why it’s so important to remove the barriers to the wider family being able to step in to help when the parents have their hands at their fullest.

Losing out on early years of JISA growth is an opportunity missed – it reduces the ultimate size of the financial buffer available to the child. That one line in the rules has unintended consequences that could negatively impact children, who they are set up to help.  

When there is so much that is complex and intractable in financial services, the simplicity of changing that one line to better reflect the realities of modern families is surely a no brainer? Especially when there is such clear demand for it.

Full press release: Over 1/3 of wider family would set up a Junior ISA on a child’s behalf, but red tape stands in the way

Media contact: Hilary Morrison, MRM London, 07793564351 / Hilary.Morrison@mrm-london.com