Vanguard ISA Transfer Issue

joshyboy

I have had huge problems transferring a Cash ISA from Virgin Money to Vanguard. They were meant to transfer my Cash ISA into an S&S ISA (their Global All Cap fund).
Two months later after a load of hassle, I checked my account and saw that they had completed the transfer. However, it is sitting in my account as cash. Does this mean that it's not been transferred properly? Has it lost its ISA status now?

masonic

ISA transfers do not usually include an instruction to automatically invest the money when it arrives, although perhaps this one did. If it is sitting in an ISA account then it has been correctly transferred. You can invest the money manually in your chosen fund (if it is showing as available to invest - some providers require that you wait for the money to clear (if received as a cheque)).

joshyboy

masonic said:

ISA transfers do not usually include an instruction to automatically invest the money when it arrives, although perhaps this one did. If it is sitting in an ISA account then it has been correctly transferred. You can invest the money manually in your chosen fund (if it is showing as available to invest - some providers require that you wait for the money to clear (if received as a cheque)).

Thanks for the information. I had to fill out on the transfer request which fund I wanted to transfer it into. Also, even though it's sitting in cash in my account, does it still have its ISA wrap? i.e. has it lost its ISA status?

masonic

joshyboy said:

masonic said:

ISA transfers do not usually include an instruction to automatically invest the money when it arrives, although perhaps this one did. If it is sitting in an ISA account then it has been correctly transferred. You can invest the money manually in your chosen fund (if it is showing as available to invest - some providers require that you wait for the money to clear (if received as a cheque)).

Thanks for the information. I had to fill out on the transfer request which fund I wanted to transfer it into. Also, even though it's sitting in cash in my account, does it still have its ISA wrap? i.e. has it lost its ISA status?

Perhaps the issues with the transfer have resulted in them failing to purchase the fund, or perhaps they just haven't got around to it yet. Either way I see no harm in doing it yourself - worst case you'll be unable to because an order is currently in progress. Seeing it as cash in the ISA is no cause for concern. It is not necessary for the money to be invested to remain ISA-wrapped.