Partially upheld: ISA / savings administration complaint against Wealthify Limited
Financial Ombudsman decision DRN-4906385 of 2024-12-20T00:00:00+00:00. ISA / savings administration complaint against Wealthify Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-4906385 |
|---|---|
| Decision date | 2024-12-20T00:00:00+00:00 |
| Firm | Wealthify Limited |
| Product | Investment |
| Claim type | ISA / savings administration |
| Outcome | Partially upheld |
| Remedy | Wealthify Limited to pay Mr D a further £50 (in addition to the £50 already paid for delay in responding to the complaint), bringing total compensation to £100. |
Summary
Mr D initiated a transfer of his son's Junior ISA from Wealthify to a new provider in December 2023. The transfer was significantly delayed, taking over two months to complete due to incorrect bank details provided by the receiving provider. Mr D had to repeatedly chase Wealthify and provide contact details that Wealthify should have obtained itself. While the ombudsman found the receiving provider bore primary responsibility for the delay, Wealthify was found to have provided poor service by failing to act proactively. The ombudsman upheld the complaint in part and ordered Wealthify to pay £100 total compensation (£50 already paid plus a further £50), rejecting Mr D's claim for additional compensation for investment losses.
The Ombudsman's reasoning
While the receiving provider bore primary responsibility for the transfer delay due to providing incorrect bank details repeatedly, Wealthify failed to act proactively and required Mr D to guide the process by providing contact details it should have obtained itself. This represented poor service warranting compensation for the distress and inconvenience caused. However, any financial loss from the two-month investment delay was likely small relative to the compensation awarded.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Wealthify Limited, all decisions | 9 | 6% |
| ISA / savings administration, all decisions | 1,932 | 27% |
| Investment, all decisions | 14,180 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website