The March ISA top-up and the Bed & ISA
On 18 March, Mr Okafor, 45, asks his platform to: (i) subscribe £20,000 cash to his stocks and shares ISA for 2024/25; (ii) sell £30,000 of shares from his general investment account (GIA) and 'Bed & ISA' them into the same stocks and shares ISA; (iii) open a Lifetime ISA with £4,000; and (iv) open a Junior ISA for his daughter with £9,000. The platform's records show he subscribed £5,000 to a cash ISA in April 2024 and transferred that cash ISA to the platform in January 2025. He withdrew £10,000 from the cash ISA in February 2025. The cash ISA is a flexible ISA. He also wants to buy an ETF that is not on the platform's approved list because it is 'cheaper than the platform's model portfolio'. He expects all subscriptions to be effective for 2024/25.
1. What are the Junior ISA limits and conditions?
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The Junior ISA limit for 2024/25 is £9,000, separate from Mr Okafor's £20,000 adult allowance. A parent or guardian can open the account for a child under 18, and anyone can contribute, but the money belongs to the child and cannot be accessed by the child until age 18 (except in limited circumstances). The £9,000 subscription does not reduce Mr Okafor's own ISA allowance and does not count towards the Lifetime ISA limit. The platform should confirm the daughter's eligibility, obtain the necessary parent or guardian authority and check that the total Junior ISA contributions across all managers do not exceed £9,000. If the daughter also has a Child Trust Fund, separate rules apply. The platform should explain that the investment risk sits with the child's account and that the account cannot be used as a short-term savings vehicle for the parent.
2. How should the platform handle the request to buy an ETF that is not on its approved list?
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The platform is not obliged to offer every investment. It can restrict its range for product governance, operational, risk or fair-value reasons. If the ETF is not on the approved list, the platform should explain the restriction clearly and consistently, rather than simply rejecting the order without reason. It should confirm whether the restriction applies to all clients or to a particular segment, and whether an exception process exists with senior sign-off. If the platform allows the trade on an execution-only basis, it must still ensure it can administer the asset, provide the required disclosures and treat the client fairly; 'cheaper' does not mean suitable. The platform should avoid giving a personal recommendation on the model portfolio alternative. The client can transfer to another platform if he wants the ETF, but the current platform should not facilitate a trade it cannot support.