Cash ISA Transfer Times

Dewpoint

With interest rates continually changing I have been transferring my cash ISA quite frequently this year. Now, while I can open a new conventional cash investment account with a bank and transfer money to it from another account very quickly, transferring cash ISA's take ages. Why?

For me, this is something Martin should address. It's frustrating and disproportionately sluggish.

masonic

Cash ISA transfers need to follow a regulated process set out by HMRC, involving not only a funds transfer, but also the exchange of paperwork between the two ISA providers. As there are hundreds of registered ISA managers, and each needs to have a system compatible with the others, there are still occasions where the postal system is used for hard copy paperwork and a transfer cheque. All ISA managers have the right to request a wet ink signed transfer form, which can slow things down if they do. Quite a number of providers do support compatible electronic messaging systems, such as the cash ISA transfer service offered by Pay UK, meaning that Royal Mail doesn't slow things down, but a number of steps must still be completed in order to effect the transfer:

1. The new ISA manager must provide the completed transfer form to the old ISA manager
2. The old ISA manager must provide the Transfer History Form for the relevant ISA to the new ISA manager
3. The new ISA manager must send an "Acceptance of Transfer" message to the old ISA manager
   
4. The old ISA manager must close the old ISA and move the funds to a central holding account
5. The old ISA manager must transfer funds from their holding account and the holding account of the new ISA manager
6. The new ISA manager must apply the transferred funds in their holding account, once received, to the customer's account

Despite having to go through these steps, I've still had electronic ISA transfers complete in 2-3 working days in the past.

Beddie

I have found Cash ISA transfers usually only take a few days.There will always be exceptions, but generally the system works well.

sheslookinhot

Beddie said:

I have found Cash ISA transfers usually only take a few days.There will always be exceptions, but generally the system works well.

That was also my experience. Transferred 2 recently, 5 days and 6 days.

Zuzi

I requested a Cash ISA transfer to Lloyds, from Marcus, 6 weeks ago (that's when I sent off the forms to Lloyds).

To this day, Marcus have not received the request from Lloyds. I spent a considerable amount of time on the phone to both already, I tend to believe Marcus more than I do Lloyds because it's very difficult to get precise information from the latter. Of course, they claim to have passed on the request to Marcus, a few times already, but then I wonder what is going wrong if Marcus still have not received it?

I raised a complaint with Lloyds and they just sent me a text that they know they are taking too long resolving (no one even contacted me about it, text two weeks later was the first reaction) and I can go to the financial ombudsman. I am finding it quite frustrating and I have to say that it is very disappointing, really bad experience compared to everything else I have seen as a retail banking customer so far.

subjecttocontract

Transfer times vary from just a few days to a very long time. I've had both, it's frustrating. I now make sure that any ISA provider is mainstream and subscribes to the bacs electronic ISA transfer service. I don't believe Marcus (Goldman Sachs) does.

Dewpoint

Dewpoint said:

With interest rates continually changing I have been transferring my cash ISA quite frequently this year. Now, while I can open a new conventional cash investment account with a bank and transfer money to it from another account very quickly, transferring cash ISA's take ages. Why?

For me, this is something Martin should address. It's frustrating and disproportionately sluggish.

If you agree that ISA transfers take far too long, complain to the FCA like I did by emailing:

complaints dot scheme @ fca.org.uk

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

Albermarle

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

To put things in some perspective, in years gone by you were lucky for a transfer to happen inside a month. So the system generally now is a lot faster than it used to be, although there are occasional long delays due to misadministration, staff shortages and sometimes a rush of transfers in after offering a good deal.

Dewpoint

Albermarle said:

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

To put things in some perspective, in years gone by you were lucky for a transfer to happen inside a month. So the system generally now is a lot faster than it used to be, although there are occasional long delays due to misadministration, staff shortages and sometimes a rush of transfers in after offering a good deal.

That may so. When I started in IT the best you could get was 128kbyte floppy disks to store stuff. 

Things have moved on and in my opinion, in this electronic age, there is no excuse for the tardy process associated with transferring ISAs. (up to 15 days for cash ISA; 30 days for stocks and shares ISAs - ridiculous)

masonic

Dewpoint said:

Dewpoint said:

With interest rates continually changing I have been transferring my cash ISA quite frequently this year. Now, while I can open a new conventional cash investment account with a bank and transfer money to it from another account very quickly, transferring cash ISA's take ages. Why?

For me, this is something Martin should address. It's frustrating and disproportionately sluggish.

If you agree that ISA transfers take far too long, complain to the FCA like I did by emailing:

complaints dot scheme @ fca.org.uk

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

The FCA complaints scheme is for making a complaint about the FCA's conduct not that of ISA providers

https://www.fca.org.uk/about/how-we-operate/complain-about-regulators

The correct way to complain about ISA transfers taking to long is to raise a complaint with the ISA managers involved in the transfer. If you wish to complain that you think the FCA should change its rules around ISA transfers, then that's one for your MP. The FCA states clearly that it does not accept complaints about its rules or guidance from consumers.

Dewpoint

masonic said:

Dewpoint said:

Dewpoint said:

With interest rates continually changing I have been transferring my cash ISA quite frequently this year. Now, while I can open a new conventional cash investment account with a bank and transfer money to it from another account very quickly, transferring cash ISA's take ages. Why?

For me, this is something Martin should address. It's frustrating and disproportionately sluggish.

If you agree that ISA transfers take far too long, complain to the FCA like I did by emailing:

complaints dot scheme @ fca.org.uk

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

The FCA complaints scheme is for making a complaint about the FCA's conduct not that of ISA providers

https://www.fca.org.uk/about/how-we-operate/complain-about-regulators

The correct way to complain about ISA transfers taking to long is to raise a complaint with the ISA managers involved in the transfer. If you wish to complain that you think the FCA should change its rules around ISA transfers, then that's one for your MP. The FCA states clearly that it does not accept complaints about its rules or guidance from consumers.

masonic said:

Dewpoint said:

Dewpoint said:

With interest rates continually changing I have been transferring my cash ISA quite frequently this year. Now, while I can open a new conventional cash investment account with a bank and transfer money to it from another account very quickly, transferring cash ISA's take ages. Why?

For me, this is something Martin should address. It's frustrating and disproportionately sluggish.

If you agree that ISA transfers take far too long, complain to the FCA like I did by emailing:

complaints dot scheme @ fca.org.uk

The more complaints they get the better and someone will eventually have to do something to remedy this ridiculously languid process.

The FCA complaints scheme is for making a complaint about the FCA's conduct not that of ISA providers

https://www.fca.org.uk/about/how-we-operate/complain-about-regulators

The correct way to complain about ISA transfers taking to long is to raise a complaint with the ISA managers involved in the transfer. If you wish to complain that you think the FCA should change its rules around ISA transfers, then that's one for your MP. The FCA states clearly that it does not accept complaints about its rules or guidance from consumers.

The FCA is responsible for setting the rules that ALL banks and buildings and societies have to adhere to. It's the regulatory body that can actually do something about the pathetically tardy response that I've encountered with financial institutions when it comes to ISA transfers. The more complaints it gets the more pressure it will feel to act.

Complaining to individual banks won't resolve the problem imo. Most have had to be dragged kicking and screaming into the 21st century anyway.