Interactive Investor SIPP and missing Cash - Should I involve the Police or Regulator?

Bebe1980

This concerns Interactive Investor  on...

28/09/20 I asked how to make a cash withdrawal and close my SIPP

28/09/20 Interactive Investor Response – Use this Form

...
05/10/20 Interactive Investor confirmed receipt of form and advised monies should be in my bank account in around 5 working days 

12/10/20 After Interactive Investor failed to pay cash within 5 working days - I asked Interactive Investor to confirm when I would receive funds

13/10/20 Interactive Investor advised I would receive funds by close of business 15/10/20

15/10/20 Online system showed Interactive Investor making a one off payment from my account

16/10/20 After Interactive Investor again failed to put the money in my bank account I chased them again - no response

21/10/20 To Date no response from Interactive Investor

The fact that the funds left my account on 15/10/2020 and have still not appeared in my bank account, it’s now 21/10/20 and there has been no response from Interactive Investor, leads me to think Interactive Investor have some kind of internal security problem within their SIPP department and am wondering whether I should involve the Police?

And a SIPP is normally under Trust and the Trustees usually have a heightened duty of care – presumably Interactive Investor is regulated – perhaps they are in breach of fiduciary rules here - Logic tells me that if MY money is not in my SIPP account and it is not in MY bank account then MY money must obviously be in a third party account somewhere - not allowed?

What do you think – have any of your subscribers had similar experiences to this with Interactive Investor?

HappyHarry

There may have been a delay or error at their end. These things happen from time to time. Calling in the police or regulator at this stage is over the top. It's not clear any crime has taken place, or that any regulations have been broken.
Whilst I understand your concern, your best call of action is to contact ii and ask them for an explanation, and if you wish to, raise a complaint with them. There is a formal complaints procedure that they must follow, and this will be the most effective way to get a result.

Dazed_and_C0nfused

You could also check you included the correct bank account details, sort code and account number, on the form ( if they were required).

dunstonh

The fact that the funds left my account on 15/10/2020 and have still not appeared in my bank account, it’s now 21/10/20 and there has been no response from Interactive Investor, leads me to think Interactive Investor have some kind of internal security problem within their SIPP department and am wondering whether I should involve the Police?

If they used BACS rather than CHAPS (which many platforms do) then it would have arrived yesterday if sent on the 15th.   However, if the payment needed a sign off first, then that can add a couple of days and then put your 3 working days on top of that for BACs.    If you use a building society or an ex building society with a central sort code then add another day or two on top of that.

Going to the police because your withdrawal is currently one day late would be farcical.

And a SIPP is normally under Trust and the Trustees usually have a heightened duty of care – presumably Interactive Investor is regulated – perhaps they are in breach of fiduciary rules here - Logic tells me that if MY money is not in my SIPP account and it is not in MY bank account then MY money must obviously be in a third party account somewhere - not allowed?

applying logic to things you do not understand does not make it obvious.   

05/10/20 Interactive Investor confirmed receipt of form and advised monies should be in my bank account in around 5 working days 

I don't believe II pre-fund withdrawals.   If the withdrawal required a sale of investments to cover it then this is probably where the process fell down for you.    It is typically around  5 working days on top of the time it takes to sell the investments and wait until settlement has completed.   So, was your holding in cash already or did it need to sell some of your investment?

As it is a SIPP and this is a drawdown withdrawal, then the funds may have an extra hop to do if they require moving from the uncrystllised segment to the crystallised segment.   Couple that with a  potential sale of investment funds to cover it, then expecting the money in the account within days is unrealistic.    Hence telling you 5 days is probably the root of the problem.

Joey_Soap

I recommend you call them. I recently had an issue with money going in to II and they were very helpful indeed in helping sort the issue out. I honestly think there's a simple explanation, most likely.

squirrelpie

As suggested phone them first. If you're still not satisfied then write to them (on paper, not email and keep a copy) and make a formal complaint. If they don't respond to that after the statutory time, then you can complain to the regulator.

Bebe1980

Thanks guys and MSE website for your helpful support.

I didn't include the entire history relating to this...

But what particularly irked me was initially being advised a cash withdrawal normally took 48 hours (29/9/20), then it changed to 5 working days (5/10/20), after they missed that on 12/10/20, it was promised for 15/10/20 and then they missed that too!

I was waiting for that money to pay for a new front door - the price of which has now increased by £400!!!

Anyway the good news is the Pay Slip relating to this payment was produced yesterday 21/10/20 and the money is finally in my account 22/10/20.

I'm still shopping around for another door

[Deleted User]

Calling the police would be the right thing to do. They have a difficult job. They too deserve a laugh every now and then.

badmemory

Deleted_User said:

Calling the police would be the right thing to do. They have a difficult job. They too deserve a laugh every now and then.

I am sure they would enjoy their giggle, after all there is little for many of us to laugh at at the moment & they do have a DB pension so they should be safe.  But maybe the odd one or two after their giggle may have wondered how they would have felt if money they needed had gone MIA for a couple of weeks.

[Deleted User]

badmemory said:

Deleted_User said:

Calling the police would be the right thing to do. They have a difficult job. They too deserve a laugh every now and then.

I am sure they would enjoy their giggle, after all there is little for many of us to laugh at at the moment & they do have a DB pension so they should be safe.  But maybe the odd one or two after their giggle may have wondered how they would have felt if money they needed had gone MIA for a couple of weeks.

Firstly, DC pensions are doing OK. 

Secondly, the money hasn’t gone “MIA”. 

Otherwise, you are spot on.