Cash ISA Transfers – New Guidelines published
The British Bankers’ Association, the Building Societies Association and the Tax Incentivised Savings Association today publish new guidelines to speed up the transfer of cash ISAs between providers and to improve the efficiency of the process.
The guidelines summarise the transfer process in five distinct steps. Each step sets out what the existing and new ISA provider is expected to do within a certain timescale. Many providers are already working to these timescales, others are taking action to meet them. Providers will start to make changes as soon as practical.
One cause of delay identified by the industry working group was insufficient information being exchanged between providers. As a result, a Model Cash ISA Transfer Authority Form has been produced to capture the necessary information for a transfer.
Commenting on the new guidelines and form, BBA Chief Executive, Angela Knight, said: “ISAs have been an enormously popular means of saving so collectively the industry has taken decisive action to resolve some of the immediate issues facing customers. Now we are moving our focus to the longer term to ensure the ISA transfer process is robust and efficient for customers.”
BSA Director-General, Adrian Coles, said: “Building societies are aware of the very real problems faced by some customers transferring their ISA. We believe that these guidelines are a good first step to simplify the process, improve communication and ensure the customer gets a better level of service.”
TISA chairman John Brasington added: “These measures provide a welcome impact on the transfer process. The next step is to investigate how electronic solutions can ensure further improvements in the secure and concurrent transfer of funds and the necessary supporting information essential for the legitimate transfer of the ISA. A working party has been established to develop a suitable process.”
The Cash ISA Transfers: Guidelines August 2008 and Model Cash ISA Transfer Authority Form have been reviewed by HM Revenue and Customs, and shared with HM Treasury, the Financial Services Authority and the Banking Code Standards Board to ensure that the concerns raised by investors and authorities have been satisfactorily addressed. The BBA, BSA and TISA will review the guidelines and model form within the next year.
The guidelines and model form are the result of a collaborative effort by the British Bankers’ Association (BBA), the Building Societies Association (BSA) and the Tax Incentivised Savings Association (TISA). The three organisations have consulted a wide range of ISA providers to identify the issues that have been contributing to delays and to develop solutions.
See pdf download (scroll to bottom) for:
- Joint Press Release
- Cash ISA Transfers: Guidelines (August 2008)
- Model Cash ISA Transfer Authority Form
- ISA Transfers – how to help the system work faster and better
Notes to Editors
1. The BBA is the leading association for the UK banking and financial services sector, speaking for 223 banking members from 60 countries on the full range of UK or international banking issues and engaging with 37 associated professional firms. Collectively providing the full range of services, our member banks make up the world’s largest international banking centre, operating some 150 million accounts and contributing £50 billion annually to the UK economy.
2. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
3. The Tax Incentivised Savings Association (TISA) is the leading trade association in the UK savings and retail investment industry. It supports the interests of consumers across the broad range of government approved savings and investment vehicles, including Individual Savings Accounts (ISAs), Child Trust Funds, Savings Gateway and Personal Pensions. TISA also represents the interests of over 120 firms involved in the supply, administration or distribution of products to savers and investors.
Press Contacts
The British Bankers’ Association
Contact the BBA press office on Tel: 020 7216 8989 Out of hours 020 7216 8888
The Building Societies Association
Rachel Le Brocq Tel: 020 7520 5905
Email: rachel.lebrocq@bsa.org.uk
Out of hours: 07773 489644
The Tax Incentivised Savings Association
John Brasington07971 280315