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

Decision detail

Summary

Mr S complained that InvestEngine refused to facilitate an in-specie transfer of his Stocks and Shares ISA containing fractional units to another provider in October 2025, causing him to miss a £500 transfer incentive. InvestEngine stated they never received a transfer request and that they can facilitate in-specie transfers on a case-by-case basis, though fractional holdings can create operational limitations. The ombudsman found that the FCA's regulatory requirement to offer in-specie transfers only applies when a client contacts the platform provider about a transfer, which never occurred here. Since no transfer request was made to InvestEngine, they were never given the opportunity to consider or decline the transfer, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied FCA COBS Rule 6.1H.3, which requires platform service providers to offer in-specie transfer options only when a client contacts them in connection with a potential transfer. Since Mr S never contacted InvestEngine or the receiving provider in October 2025 to initiate a transfer request, the regulatory obligation did not arise. InvestEngine was never given the opportunity to consider or process a transfer request. The ombudsman rejected the argument that Mr S did not initiate a transfer because he believed it was unavailable, noting that while InvestEngine's website and prior correspondence may have created that impression, this does not alter the fact that no request was made. Any finding that InvestEngine would have facilitated or declined the transfer would be speculative.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website