Why do Stocks and shares ISA transfers take so long?

Andygoog

I've been moving old Stocks and Shares ISAs into cash ISAs.  On average it takes 6-8 weeks to complete the process.  Why, in this electronic transfer era, does it take so long? The 'industry standard' is 30 working days. Why are these providers allowed so much time?  

born_again

Aside from the stocks & shares issue.
Not all ISA  providers are electronic. many still require manual intervention. 

dunstonh

On average it takes 6-8 weeks to complete the process.

I find most S&S ISAs take 5-10 days.

The 'industry standard' is 30 working days.

I would disagree with referring it to a standard - its a deadline.  However, you do need to remember that you are including some providers in there with legacy systems.

Why are these providers allowed so much time?  

As most are far quicker than you mention, it may be better to name the slow ones.  Typically I find its only the fund houses with pre-RDR funds and systems that are more sluggish, which is to be expected.    Some Robos are sluggish whilst the platforms tend to be the quickest.

eskbanker

Andygoog said:

The 'industry standard' is 30 working days.

In what sense?  The specified timescale is 30 calendar days:

Deadlines and complaints

ISA transfers should take no longer than:

• 15 working days for transfers between cash ISAs
• 30 calendar days for other types of transfer

https://www.gov.uk/individual-savings-accounts/transferring-your-isa

poseidon1

Andygoog said:

I've been moving old Stocks and Shares ISAs into cash ISAs.  On average it takes 6-8 weeks to complete the process.  Why, in this electronic transfer era, does it take so long? The 'industry standard' is 30 working days. Why are these providers allowed so much time?  

I think it fair to say 30 days should be considered standard for cash to  cash ISAs only, and realistically where transferor/transferee companies operate electronically.

Far too many variables with stocks and shares isa for 30 days to be a 'sure thing'. However I would state that a good S & S isa provider's efficiency in executing a transfer at their end can be ruined by the inefficiency of the receiving cash isa provider.

Example, last year February  HL electronically transferred cash to a fixed rate Barclays cash isa within 4 days of receiving Barclays' request ( well done HL ).    Barclays then held funds in limbo for 4 months, due to being completely overwhelmed with transfers, whilst still taking on new business in March/ April.  

After badgering them with complaints , Barclays ultimately  paid compensation (£200 ) for their dire service as well as back interest from February, but needless to say entire maturing balance was then transferred away from Barclays this year, into the much more efficient hands of Charter Savings Bank   ( only took 1 week from transfer request to Charter crediting  the  isa account set up in advance). 

masonic

I started a transfer to HL on Monday. My existing provider emailed me today with an expected completion date of 3rd June (6 weeks from now). All holdings are listed on LSE and so a CREST transfer is needed. I have a feeling it will not take that long, but we'll see.

masonic

masonic said:

I started a transfer to HL on Monday. My existing provider emailed me today with an expected completion date of 3rd June (6 weeks from now). All holdings are listed on LSE and so a CREST transfer is needed. I have a feeling it will not take that long, but we'll see.

All my holdings appear to have been transferred over the past 3 days, so all that is left is residual cash. Hopefully this will follow next week and all will be wrapped up in less than 10 working days.

masonic

For anyone interested my in specie S&S ISA transfer completed yesterday, so 8 working days from when I requested it. Which I am quite impressed with. It may have been even sooner, but I received a dividend to the old ISA on Monday, which might have delayed the residual cash transfer a bit.

Albermarle

masonic said:

For anyone interested my in specie S&S ISA transfer completed yesterday, so 8 working days from when I requested it. Which I am quite impressed with. It may have been even sooner, but I received a dividend to the old ISA on Monday, which might have delayed the residual cash transfer a bit.

I did an inspecie S&S transfer a couple of months ago ( Fidelity to HL for the cashback) Also took about 8 working days from start to finish. Pretty good I think !

masonic

Albermarle said:

masonic said:

For anyone interested my in specie S&S ISA transfer completed yesterday, so 8 working days from when I requested it. Which I am quite impressed with. It may have been even sooner, but I received a dividend to the old ISA on Monday, which might have delayed the residual cash transfer a bit.

I did an inspecie S&S transfer a couple of months ago ( Fidelity to HL for the cashback) Also took about 8 working days from start to finish. Pretty good I think !

Seems we are both taking advantage of HL's generosity. I also have a SIPP to transfer in from Fidelity, but needed to register for the extension due to the 18 month clawback clause in the prior Fidelity cashback incentive I received.

Albermarle

masonic said:

Albermarle said:

masonic said:

For anyone interested my in specie S&S ISA transfer completed yesterday, so 8 working days from when I requested it. Which I am quite impressed with. It may have been even sooner, but I received a dividend to the old ISA on Monday, which might have delayed the residual cash transfer a bit.

I did an inspecie S&S transfer a couple of months ago ( Fidelity to HL for the cashback) Also took about 8 working days from start to finish. Pretty good I think !

Seems we are both taking advantage of HL's generosity. I also have a SIPP to transfer in from Fidelity, but needed to register for the extension due to the 18 month clawback clause in the prior Fidelity cashback incentive I received.

I am keeping my SIPP with Fidelity, as part of it is OEIC funds for which I pay 0.2% and the rest is capped at £90.
With HL I would be paying on average about 0.4% for the funds and the cap is £200, so not as attractive as moving the ISA which are all exchange traded products with a cap of only £45.
Probably would still have been worthwhile to transfer as the cashback was so generous, but not as clear a no brainer as the ISA.
If there is a new round of cashbacks, I still have a couple of ex workplace pensions that I could transfer at some point.