Not upheld: ISA transfer processing and regulatory compliance complaint against Charter Court Financial Services Limited trading as Charter Savings Bank

Decision detail

Summary

Mr Z complained that Charter Court Financial Services Limited did not correctly process an ISA transfer request from Bank B. The initial transfer was rejected due to insufficient funds, and when Mr Z manually transferred funds, the amount exceeded the annual ISA subscription allowance and was rejected by Charter. Charter resubmitted the transfer request twice, both rejected due to insufficient funds. The ombudsman found that Charter acted appropriately by following Mr Z's instructions and ISA regulations, and was not responsible for the rejection by Bank B or the consequences of Mr Z's manual transfer. The complaint was not upheld, though Charter had already paid £30 compensation for delayed response.

The Ombudsman's reasoning

The ombudsman determined that Charter acted appropriately by following Mr Z's instructions and ISA regulations. When the initial transfer was rejected due to insufficient funds, Charter properly informed Mr Z and advised him of the next steps. When Mr Z manually transferred funds, this removed them from the ISA wrapper, causing them to exceed the annual subscription allowance, which Charter correctly rejected in accordance with ISA regulations. Charter was not responsible for the consequences of Mr Z's manual transfer action. The £30 compensation for delayed response was deemed fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website