Not upheld: ISA / savings administration complaint against InvestEngine (UK) Limited

Decision detail

Summary

Mrs S complained that InvestEngine refused to facilitate an in-specie transfer of her Stocks and Shares ISA to another provider in October 2025, causing her to miss out on a £500 transfer incentive. InvestEngine stated they never received a transfer request from Mrs S and explained they can support in-specie transfers on a case-by-case basis, though fractional holdings can create operational limitations. The ombudsman found that the FCA regulatory requirement to offer in-specie transfers only applies when a client contacts the platform provider about a potential transfer. Since Mrs S never made a transfer request or contacted InvestEngine about initiating one, the firm was never given the opportunity to consider the transfer, and therefore could not have refused or prevented it. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that COBS Rule 6.1H.3 requires platform service providers to offer in-specie transfer options only when a client contacts them in connection with a potential transfer. Since Mrs S never made a transfer request to InvestEngine or contacted them about initiating a transfer in October 2025, the regulatory obligation was never triggered. Without a transfer request being made, InvestEngine could not have refused or prevented the transfer, and therefore could not have caused Mrs S to lose the transfer incentive. The ombudsman noted that while InvestEngine's website information may not have fully reflected their current case-by-case approach, this did not alter the outcome because no request was ever submitted for consideration.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website