Equitable Life has announced plans to launch a Cat-marked equity tracker ISA in April.
The maxi ISA will allow up to £7,000 to be invested in the Equitable UK All-Share Index Tracking Trust.
It will have no initial charges and an annual charge of 1 per cent per annum.
Managing director Alan Nash says: "With our low costs and world class flexible IT systems, clients will expect us to be able to offer a completely new and competitive Cat-marked ISA. That is exactly what we are doing."