Over 40s being prevented from transfering LISAs to a new provider
in ISAs & tax-free savings
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At the age of 39 when the LISAs were first introduced we signed up immediately, myself a S&S LISA, and my wife who was a bit more risk adverse a cash LISA. 5 years down the line, she has now decided that a S&S LISA would be more suitable, but have come up against a very large brick wall, with every provider including Moneybox, Nutmeg, H&L, AJ Bell and Foresters are excluding us on the basis of our age. The will happily accept transfers from LISAs for people aged under 40, but have informed us that a business decision is stopping them from allowing over 40s access to markets and causing us material inconvenience as we are losing out on financial returns. I cannot see how the financial ombudsman can sit back an allow providers to discriminate against people because of their age? Is this something others have come across? Do we need Martin to champion our cause?
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However, I suspect there is some confusion going on here with what they are saying and what you are saying. HL, for example, do allow you to invest beyond age 40. However, their FAQ says they cannot currently accept transfers from other Lifetime ISAs.
When you are aged over 40, I believe you have to either contribute to the existing provider or transfer the existing one first before you can then add to the new one.
The scheme itself (as with many others) has age-related terms, which weakens the discrimination argument for me when applied to specific products, as ISA providers are already permitted to elect not to accept transfers, so there is an argument that it's legitimate for a provider to only accept transfers if the consumer was eligible to open a new account.
However, that's not to say that the ombudsman would see it that way, but the ombudsman service only responds reactively to individual cases and it's the regulator (FCA) that has the oversight about how regulated companies operate.
That thread highlighted some recent press attention but I'm not aware of it being on the MSE radar - however unfair it might be, it is a fairly niche problem not affecting huge numbers (relative to more significant industry issues)....
Edit: actually, one was claimed (with IFA assistance) in one of the previous threads at https://forums.moneysavingexpert.com/discussion/comment/78661075/#Comment_78661075