Upheld: unreasonable delay in ISA transfer; failure to communicate; failure to mitigate impact of delay complaint against VANGUARD ASSET MANAGEMENT, LTD.
Financial Ombudsman decision DRN-5946829 of 2026-04-13T00:00:00+00:00. unreasonable delay in ISA transfer; failure to communicate; failure to mitigate impact of delay complaint against VANGUARD ASSET MANAGEMENT, LTD.. Outcome: Upheld.
Decision detail
| Reference | DRN-5946829 |
|---|---|
| Decision date | 2026-04-13T00:00:00+00:00 |
| Firm | VANGUARD ASSET MANAGEMENT, LTD. |
| Product | Investment |
| Claim type | unreasonable delay in ISA transfer; failure to communicate; failure to mitigate impact of delay |
| Outcome | Upheld |
| Remedy | Vanguard must: (1) Calculate financial loss by determining cash that would have transferred by 28 January 2025, calculate notional value using FTSE UK Private Investor Growth Index benchmark between 28 January 2025 and 25 April 2025 (adjusting for cash holdings), deduct actual transferred amount, and adjust to date of final decision using Mr W's ISA average growth rate; (2) Pay £250 total compensation for distress and inconvenience (inclusive of £150 previously offered); (3) Pay within 28 calendar days or incur 8% simple interest per annum from deadline to settlement date. |
Summary
Mr W complained that Vanguard caused significant delays in transferring his stocks and shares ISA to a new provider following fee changes, with the transfer taking from December 2024 to April 2025. Mr W was frustrated by being unable to manage his investments or access liquidated cash during the transfer, particularly when market prices fell in early April 2025. Vanguard acknowledged 41 business days of delays and offered £150 compensation, but Mr W rejected this. The ombudsman upheld the complaint, finding Vanguard breached FCA principles by failing to meet industry standards (30 calendar days per HMRC, two business days per step per TRIG framework) and missing an opportunity to mitigate impact by transferring available cash. The ombudsman directed Vanguard to calculate financial loss using a benchmark index and pay £250 total compensation.
The Ombudsman's reasoning
The ombudsman found that Vanguard breached FCA Principles 2, 6, and 7 by causing unreasonable delays and failing to communicate adequately. Applying HMRC's 30 calendar day guideline plus three additional business days for the festive period, the transfer should have completed by 28 January 2025. Vanguard failed to complete steps within the two business day standard set by TRIG framework. The ombudsman rejected Vanguard's loss calculation methodology because it did not account for Mr W's likely investment behaviour had the transfer completed on time. The ombudsman also found Vanguard missed an opportunity to mitigate impact by transferring liquidated cash to the new provider when Mr W requested it. However, the ombudsman rejected Mr W's alternative loss calculation approach, finding it unlikely he would have held significant uninvested cash by early April 2025 had the transfer completed without delay.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| VANGUARD ASSET MANAGEMENT, LTD., all decisions | 98 | 42% |
| Investment, all decisions | 13,970 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website