Upheld: ISA / savings administration complaint against M & G Securities Limited
Financial Ombudsman decision DRN-5056810 of 2025-04-14T00:00:00+00:00. ISA / savings administration complaint against M & G Securities Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5056810 |
|---|---|
| Decision date | 2025-04-14T00:00:00+00:00 |
| Firm | M & G Securities Limited |
| Product | Investment |
| Claim type | ISA / savings administration |
| Outcome | Upheld |
| Remedy | M&G Securities Limited trading as M&G Investments must pay Mr M £250 for distress and inconvenience caused by the delayed ISA transfer. |
Summary
Mr M complained that M&G delayed transferring his stocks and shares ISA from January 2024 to August 2024, causing him distress and inconvenience. The third party attempted to initiate the transfer through multiple letters and emails starting in February 2024, but M&G claimed it did not receive any transfer request until 21 June 2024. However, M&G's own records contradicted this, showing receipt of correspondence on 21 May 2024, and all letters were addressed to the correct postal address confirmed by M&G as correct. The ombudsman found M&G failed to treat Mr M fairly and reasonably, either by not receiving correspondence that was properly addressed or by failing to act with urgency after becoming aware of the customer's extended attempts. M&G was ordered to pay £250 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that M&G's claim of not receiving correspondence from the third party until 21 June 2024 was not credible on the balance of probabilities. M&G's own records acknowledged receipt of the third party's 12 April 2024 letter on 21 May 2024, contradicting its later assertion. All correspondence was addressed to the correct postal address listed on the TISA database, which M&G confirmed was correct and at which it successfully received other letters. The ombudsman concluded it was likely M&G received correspondence from the third party as early as 9 February 2024. Even if M&G had not received earlier correspondence, by 21 May 2024 M&G was aware of the customer's attempts since January 2024 and should have acted with urgency. M&G's failure to act promptly after 21 May 2024 constituted unreasonable delay and unfair treatment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| M & G Securities Limited, all decisions | 30 | 18% |
| ISA / savings administration, all decisions | 1,920 | 26% |
| Investment, all decisions | 14,114 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website