Partially upheld: transfer request handling and processing; communication clarity complaint against Trading 121 UK Ltd (T212)

Decision detail

Summary

Mr P complained that T212 mishandled his investment transfer requests from another broker, resulting in financial loss when his investments were sold as cash transfers rather than stock transfers. Eight transfer requests were initiated, with only three successfully processed. T212 and the Ombudsman found that the GIA transfer error was caused by the other broker, and the ISA transfer was processed correctly according to Mr P's explicit written instruction to complete a cash transfer, which he signed. The only identified failing was that automated communications and cancellation notifications were unclear and could have been communicated more clearly. The Ombudsman upheld the complaint in part, finding the £100 compensation already offered by T212 for communication issues to be fair and reasonable, with no further remedy directed.

The Ombudsman's reasoning

The Ombudsman agreed with the investigator that T212 did not make substantive errors in processing the transfer requests themselves. For the GIA transfer (request 843), the error was caused by the other broker sending cash instead of stock, which the other broker confirmed in writing. For the ISA transfer (request 293), the Transfer Authority Form clearly showed Mr P selected 'Cash' as the transfer type and confirmed he understood shares might need to be sold. Mr P signed this form, indicating he had opportunities to review before proceeding. The only injustice identified was confusion caused by unclear automated communications and cancellation notifications, which T212 acknowledged. The £100 compensation offered for these communication issues is fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website