Shares switches delayed for months
PROVIDERS are taking months to release money held in cash Isas for savers who wish to invest in the stock market, say experts.
Since April, the Government has allowed customers to transfer money saved in cash Isas (individual savings accounts) to the stocks and shares version for the first time.
Savers can have as much as £50,000 in cash Isas built up from previous years, yet advisers have reported long delays in getting the money.
Juliet Schooling at discount broker Chelsea Financial Services said: “Transfer requests placed in April are only just coming through now, so it is taking at least four months to get the money, which is simply unacceptable. Providers are not geared up for this rule change, which is frustrating for savers who want to move their money.
“Given that the stock market has plunged since April, this has actually worked in our favour because shares have become cheaper so investors are getting more for their money now.
“However, there is a strong degree of disorganisation.”
Meera Patel at Hargreaves Lansdown said: “We have noticed delays and companies that simply don’t bother to contact us when we chase up the transfers.
“It is early days but this is clearly very poor service. There is no excuse for causing unnecessary delays like this.”