Cash ISA transfer guidelines

STEP 1 New ISA Manager asks the investor to confirm the request to transfer by completing a Cash ISA Transfer Authority form with a wet signature unless an alternative agreement is in place between ISA managers. If opening a new ISA, the investor must also complete an ISA application, which could be either written or non-written and be validated by the new ISA Manager. [Take Application]

TIMESCALE: If the ISA investor’s instruction is received through a remote location (e.g. a branch) and the Cash ISA Transfer Authority Form needs to be passed to one or more processing centres, each centre should process and pass on the form within 2 business days. [but '0' days otherwise?]

STEP 2 New manager forwards the original Cash ISA Transfer Authority Form to the existing ISA Manager and confirms in writing to the existing ISA Manager that
he/she is willing to accept the transfer (See Transfer Acceptance section on Model Form)

TIMESCALE The processing centre should action Step 2 within 4 business days from receipt of the transfer request.[confirm acceptance - 4 days]

STEP 3 Existing ISA Manager sends a Cash ISA Transfer Form to the new ISA Manager, accompanied by a cheque for the transfer proceeds. The transfer of funds must not be made by BACS or bulk payment by cheque unless agreement has been reached between the ISA Managers.

Where information supplied by the new ISA Manager and information held by the existing ISA Manager differ, the transfer should go ahead subject to the existing ISA Manager being confident of the investor’s identity (this is to ensure investor protection) and is satisfied which ISA account is to be transferred. [send money - 10 days]

TIMESCALE: Subject to the investor’s stipulated transfer date, the maximum timeframe for actioning Step 3 should be 10 business days, subject to resolving discrepancies and or requirements directly with the ISA investor (e.g. obtaining/updating old passbook/token).

As soon as the existing ISA Manager recognises that a delay beyond 10 business days is likely to occur, it is their responsibility to notify the new ISA Manager and the ISA investor of the reasons for the delay and a likely timescale for resolution.

HM Revenue & Customs rules allow the existing ISA Manager a maximum of 30 days to respond to the new ISA Manager’s request and complete the transfer. The industry standard must aim to undercut this by a reasonable degree, but providers will need some flexibility due to the rate sensitivity of products. The suggested 10 days will allow most ISA managers to meet the standard, and a number to better it.

CHASE UP: If the new ISA Manager has not heard anything from the existing ISA Manager within 14 business days after sending the cash ISA Transfer Authority Form, it is the responsibility of the new ISA Manager to check the progress

PROCESSING the transferred ISA funds: The new ISA Manager should ensure that the transferred funds are credited to the ISA investor’s account within five business days.