Not upheld: ISA / savings administration complaint against M & G Securities Limited

Decision detail

Summary

Mr W complained that M&G unreasonably delayed the transfer of his stocks and shares ISA to a cash ISA with another provider (B), causing him to miss a £50 cashback offer. M&G disputed the complaint, stating it had acted promptly upon receiving the required original signed transfer form on 20 July 2024 and had resent documents when B reported non-receipt. The ombudsman established a detailed timeline and found that M&G did not receive the initial transfer request until 26 June 2024 and acted promptly after receiving the signed form on 20 July 2024. Although the ombudsman acknowledged that electronic transfer methods would have been more efficient than post and cheque, it concluded this did not constitute unreasonable delay. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman established a detailed timeline based on available evidence and found that M&G did not receive the transfer request until 26 June 2024 and did not receive the required original signed form until 20 July 2024. Following receipt of the signed form, M&G acted promptly by selling investments and posting a cheque on 25 July 2024. While the ombudsman acknowledged that electronic transfer and email would have been more efficient than cheque and post, this method alone did not constitute unreasonable delay. M&G resent documents promptly when B reported non-receipt, and the address used was confirmed as valid by B. The ombudsman concluded M&G did not unreasonably delay the transfer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website