Has anyone else had long delays with Vanguard ISA Transfer, where they cash out, but do not move the money
This is my current outstanding ISA situation
Vanguard sold and converted to cash 19th May, IE keep asking for it, and when I get in touch with Vanguard they say it is in progress.
I have setup IE AutoInvest 66% in IESU and 34% in VUSA. Because Vanguard seem to be just sitting on the cash and I have now been out of the market for 5 full trading days, I have missed out on £13,800 gains
If there is an issue, I wish they would just tell me, rather then saying it is in progress.
Thank you
30/05 Quick Update, they had now actually told me it could take up to 30 business days, which could mean 30th June. It is bad that they cash it in day one, then not transfer for up to 30 business days.
Yes, I had the same last year when I transferred a Vanguard GIA to Hargreaves Lansdown.
The transfer of my ISA from HL to IE was pretty quick, though.
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Hi James,
Providers can take up to 30 days to transfer funds.
When you receive confirmation from Vanguard that your transfer has been completed, you should see the funds in your account within a few days.
I hope you have a great long weekend, and please let me know if I can help with anything.
Mark
Thank you for the information. Unfortunately Vanguard had come back to me and said it can take up to 30 business days. So with weekends and bank holidays, it might end up been end of June.
Thank you
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@jamesc , @anon98946158
Vanguard had a maximum of two business days to instruct their bank to transfer your cash to IE after your assets were liquidated. This is in accordance with Section 30 of the “Industry-wide framework for improving transfers and re-registrations” which states that organizations should complete each of their own steps in the transfer within two full business days.
In light of the delay, which resulted in a missed investment opportunity and financial loss, you may file a written complaint with Vanguard and request compensation. Vanguard will have up to eight weeks to provide you with a final decision and compensate you accordingly. If you are dissatisfied with the compensation offered, you have the right to escalate your complaint to the Financial Ombudsman Service (FOS). Please see the link below for more information on how to file a complaint with the FOS:
Financial Ombudsman: How to Complain
Please note that Vanguard has a limited number of free claims with the FOS each year. After this limit is reached, they must pay over £500 for each complaint resolution. As such, it is in their best interest to resolve your complaint satisfactorily and avoid having to pay both compensation for your loss, inconvenience, and distress as well as the £500 fee to the FOS.
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Financial ombudsman upheld almost 100 complaints about similar transfer delays, more info in the link below:
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The original post was from June 22. I did not go to the FOS, I basically did not like been out of the market for so long, so got back in to the VUSA. I would have been better in the IESU, which is what I was transferring too on IE.
I was surprised to see "Vanguard had a maximum of two business days to instruct their bank to transfer your cash to IE after your assets were liquidated" They communications made it look like it could take upto 6 weeks.
Vanguard did automatically raise a complaint and did a good will gesture of £50.00
I have a GIA with IE that has made a lot of money with IESU, but would have perferred to do it with my ISA, so no CGT.
I will be selling out of the IESU soon, back into VUSA probably so will get hit with CGT.
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