Avalon Investment Services will administer over 30,000 Junior Isas as part of the Government’s initiative to provide an investment account for children in care.
In total, 55,000 children up to the age of 18 are expected to benefit from the scheme in 2012, which was launched by the Department of Education and children’s charity The Share Foundation in February.
Avalon will be responsible for administering stocks and shares Isas for children under 14 who have been in care for a minimum of 12 months and do not have a child trust fund in place.
The Isas will be opened with an initial contribution of £200. Jisas have a tax-free annual limit of £3,600.
The Government expects a further 15,000 children in care will become eligible for an Isa every year.
The Share Foundation will provide financial education to encourage responsible use of the funds once children have reached 18.
Avalon director Harry Kerr (pictured) says: “Our appointment by an independent account allocation adviser is a good reflection of our excellent administration and the high quality of the Children’s Isa offering. It proves smaller companies in the financial services field, if good, can succeed.”