Not upheld: ISA / savings administration complaint against Jarvis Investment Management Limited

Decision detail

Summary

Following Mrs F's death in August 2023, her husband Mr F requested that Jarvis transfer her stocks and shares ISA in specie to his ISA with another provider. Jarvis refused, stating it could only transfer cash and required written instructions and a voided cheque. Mr F complained that Jarvis should have shown more compassion and flexibility with the guidelines. The ombudsman found that Jarvis was legally required under The Individual Savings Account Regulations 1998 to refuse the in specie transfer and require cash only, as the regulations permit cash-only transfers when the subscription is being made with a different account manager. The ombudsman upheld Jarvis's requirement for written instructions and proof of bank details as reasonable safeguards. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Jarvis was legally required to refuse the in specie transfer because The Individual Savings Account Regulations 1998 permit cash-only transfers when the subscription is being made with an account manager other than the deceased's account manager. An in specie transfer to a third-party ISA manager would have breached the regulations and HMRC guidance, potentially voiding the ISA and resulting in penalties for both Jarvis and Mr F. The requirement for written instructions and proof of bank details was reasonable to ensure proper crediting of funds. While the ombudsman acknowledged Mr F's frustration during a difficult time, Jarvis was correct to insist on compliance with regulatory requirements, and it demonstrated fairness by offering to accept instructions by email.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website