Not upheld: ISA transfer delay and service quality complaint against Vanguard Asset Management, Ltd.

Decision detail

Summary

Mr R complained that Vanguard mismanaged his stocks and shares ISA transfer to provider F, causing unnecessary delays and poor communication. The transfer request was initially submitted electronically on 9 September 2025 but was not received by Vanguard because F used an incompatible electronic system. Despite being informed of the incompatibility and offered three alternative submission methods (Origo, email, or post), F continued attempting electronic submission until manually submitting the transfer authority form on 16 October 2025. Vanguard processed the transfer within six business days of receiving valid instructions on 24 October 2025. The ombudsman found that Vanguard acted reasonably throughout, was not at fault for the delay, communicated promptly and helpfully, and processed the transfer within contractual timescales. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that the delay in receiving the transfer request was not Vanguard's fault, as F used an incompatible electronic transfer system. Vanguard is entitled to make business decisions about which electronic transfer providers to subscribe to. Vanguard provided clear alternative methods for submission and communicated promptly with both Mr R and F. Once Vanguard received valid instructions on 16 October, it processed the transfer within six business days, well within its contractual 30-day obligation and industry practice. The ombudsman rejected arguments that Vanguard should have proactively followed up more aggressively, finding that Vanguard's communication was fair and reasonable in the circumstances. The ombudsman clarified that FOS determines fairness, not whether the highest standard of service could have been achieved.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website