Not upheld: unintended full transfer of ISA funds complaint against Octopus Money Unit Trust Managers Limited (previously trading as Virgin Money)

Decision detail

Summary

Mr F complained that Octopus transferred his full stocks and shares ISA (£157,838.08) when he only intended to transfer £20,000 to another provider. Mr F claimed he had requested a partial transfer through provider V, but provider V's transfer request via the Origo electronic system specified all units should be sold. Octopus processed the full transfer based on this instruction. When the funds were returned and reinvested, unit prices had increased, resulting in fewer units repurchased. The ombudsman found Octopus acted reasonably by following the clear instruction received via Origo without contacting Mr F, as the electronic system is designed to streamline transfers with minimal intervention. The complaint was not upheld and no compensation was awarded.

The Ombudsman's reasoning

The ombudsman found that Octopus received a clear instruction via Origo to transfer the full ISA value, with no partial transfer option selected. The purpose of the electronic Origo system is to streamline transfers with less manual intervention. On balance, it was fair for Octopus to act on the instruction it received without contacting Mr F to verify, as this is consistent with how such electronic systems operate. The ombudsman was not persuaded that Octopus breached FCA Principles for Business or the Consumer Duty.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website