Upheld: Transfer delays and service failures in ISA transfer process complaint against HBOS Investment Fund Managers Limited (Halifax)

Decision detail

Summary

Mr D complained that Halifax delayed and frustrated his efforts to transfer his ISA to Platform A. Halifax liquidated his holdings promptly but took over six weeks (30+ working days) to transfer the resulting cash, making multiple errors including mixing up his transfer with another customer's. The ombudsman found Halifax's delay breached industry standards (10 working days expected) but rejected Mr D's claim that Halifax should have delayed the sale for a better price, as his instruction was to sell immediately. Since Mr D did not reinvest the cash upon arrival at Platform A, no specific financial loss from price movements could be established. The ombudsman upheld the complaint and required Halifax to pay £200 for distress and inconvenience plus £463.08 in interest for the deprivation period.

The Ombudsman's reasoning

The ombudsman found Halifax failed to transfer the ISA within a reasonable timeframe, causing a delay of over 30 working days against the industry standard of 10 working days. However, the ombudsman rejected Mr D's claim that Halifax should have delayed the sale to achieve a better price, as Mr D's instruction via Platform A was to sell promptly and transfer the cash. Since Mr D did not reinvest the cash upon arrival at Platform A (choosing instead to remain in cash while disputing the transfer amount), the ombudsman could not establish any specific financial loss from the delay beyond the deprivation of cash. The ombudsman found Halifax's offer of £200 for distress and inconvenience, plus £463.08 in interest, to be fair and reasonable compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website