Delays in SIPP and ISA transfers

I commented on the delays in transferring a SIPP from Hargreaves Lansdown to another provider in the May ShareSoc Newsletter, and we published some letters from other members on similar problems in the June Newsletter. I thought readers might like to know that the original SIPP transfer has now finally completed. It actually took over 5 calendar months to get all the portfolio holdings to transfer (this being an “in-specie” transfer as it is called).

This is clearly a quite ridiculous period of time when there were no particular reasons for the delay. Such delays are enormously prejudicial to the interests of investors as your portfolio is effectively frozen for the duration of the transfer. One of the complications that arises is because with SIPPs and ISAs your shares are not held in your own name, but in the operator’s nominee name (as part of a pooled nominee). Fund holdings seem to be even worse than direct shareholdings. So the transfer is complex and in essence paper based. Oh how much simpler it would be if the holdings were in your own name!

My complaint on this matter has now been sent to the Financial Ombudsman who have forwarded it to the Pensions Ombudsman as they apparently deal with pensions.

Roger Lawson