Appendices
Contents
Cash ISA to Cash ISA Transfers – suggested best practice
Model cash ISA transfer authority form
Sample S975 ITA 2007 certificate
Cash ISA to Cash ISA Transfers – suggested best practice
We recommend that ISA providers adopt the procedures below, devised by
representatives of the industry. However, they are recommendations only and not
prescriptive.
The timelines shown for each step in the transfer process are consistent with ISA
providers’ legal obligations. However, ISA providers should bear in mind the voluntary
industry agreement on Cash ISA transfer performance, whereby BBA, BSA & TISA have
agreed that from 2017 a minimum of 80% of transfers will be carried out within 7 working
days.
The process below is based on the assumption that the customer approaches the new
ISA provider to effect the transfer. On the rare occasion that the customer contacts his/her
existing provider, s/he should be asked to go direct to the new ISA provider.
These guidelines are effective for Cash ISA to Cash ISA transfers initiated on or after 1
January 2017, until such time that these guidelines are updated.
Note:
o The term ‘Bacs System’ refers to the electronic messaging system developed and
o The term ‘days’ refers to working days
1
. If any instruction is received after normal
working hours then it is treated as having been received on the following day.
Process
Step
Action
Timescale
Days
1
New ISA provider asks the customer
to confirm the request to transfer by
completing a Cash ISA Transfer
Authority Form with a wet signature,
unless an alternative agreement (e.g.
both parties use the Bacs system) is
in place between ISA providers.
The customer must also complete a
transfer application/instruction, where
required, which is validated by the
new ISA provider.
New ISA provider forwards the
original Cash ISA Transfer Authority
The process starts on the day the
new ISA provider receives the Cash
ISA Transfer Authority Form from the
customer, wherever this is received
in the organisation.
The new ISA provider has 5 working
days to process the customer’s
instruction and send on to the old
provider.
5
Form/transfer request message to
the old ISA provider (if paper based,
see Transfer Acceptance section on
Model Form below)
First class post or equivalent should
be used.
1a
In the post/messaging system
1
2
Production of Transfer History Form
and Payment:
For paper this includes the production
and despatch of the cheque together
with the Cash ISA Transfer History
Form
2
.
For electronic this includes the
initiation of the electronic payment
following receipt of the “Acceptance
of Transfer” and “Ready for Payment”
message from the New Party.
The date on the cheque must match
the first day where interest no longer
accrues on the funds being
transferred.
Similarly, if funds are transferred
electronically then the payment must
be initiated on the first day on which
interest no longer accrues on these
funds.
The transfer of funds must not be
made by electronic means (unless
where both parties are using the Bacs
system) or bulk payment by cheque
unless agreement has been reached
between the ISA providers.
Where information supplied by the
new ISA provider and information
held by the old ISA provider differ, the
transfer should go ahead subject to
the old ISA provider having matched
the data to a sufficient degree to
identify the correct customer and is
satisfied which ISA account, or part of
the account, is to be transferred.
The maximum timeframe for
actioning Step 2 should be 5 working
days, where day 1 is the first day the
request is received in the
organisation.
First class post or equivalent should
be used.
As soon as the old ISA provider
recognises that a delay beyond 5
business days is likely to occur,
(pended cases excepted
3
) it is their
responsibility to notify the new ISA
provider and the customer of the
reasons for the delay and a likely
timetable for resolution.
5
2a
In the post/messaging system.
1
3
Once a Transfer has been received
by the new ISA provider, it should not
be rejected without first contacting
the old ISA provider using the contact
details on TISA database 1.
The new ISA provider should apply
the transferred funds to the
customer’s account.
Interest on the transferred funds
should be backdated either to the
date on the cheque, inclusive, or to
the date which represents ‘day 16’ of
the transfer process, inclusive –
whichever is earlier.
For electronic payments, interest on
the transferred funds should be
backdated either to the date the
payment was initiated, inclusive, or
to the date which represents ‘day 16’
of the transfer process, inclusive –
whichever is earlier.
3
4
TOTAL DAYS
15
Chase-up Process between steps 1 & 2 if required
If the new ISA provider has not heard anything from the old ISA provider within 10 working
days after sending the Cash ISA Transfer Authority Form/Transfer request message, it is
the responsibility of the new ISA provider to check the progress.
Providers should use the most appropriate medium of communication in the prevailing
circumstances.
Pending Cases
Cases should be pended where:
o the customer has expressly requested the transfer to take place on some future date,
or
o a customer's account has a restriction on it (i.e. notice account / fixed rate) where to
transfer immediately would cause the customer to incur a financial charge & the
customer has NOT indicated that they are willing to pay such a charge, or
o the terms and conditions restrict access and therefore do not permit the transfer to
another provider [prior to] [until] a future date.
Transfers cannot be pended due to errors/omissions on the transfer form or where
additional information (i.e. passbooks) is required from customers or the other provider
involved in the transfer.
The day a pended case is actioned (pended) by the old provider does not count in the
timescales for either provider.
The first day the money becomes "free to move" does count towards the timescales for
both providers.
The old provider MUST inform the new provider of pending a case in an agreed format,
this is assumed to be letter/’Notification of Transfer Pend’ electronic message in the
absence of any other agreement. This communication must include, the date on which
the case was pended (which is not counted by either provider) and the first date the
account is free to move.
Where a customer's account is free to move within just a few days of the transfer request
being received by the old provider, the provider has discretion not to pend the case but to
simply process the case when it is free to move, so long as they still complete the transfer
out within the 5 working days requirement (with no days permitted as pended). This is to
remove the need for costly and time-consuming communication between organisations
for cases that can be completed within 15 working days, even though the funds may not
be free to move for a day or so.
It is at the individual provider’s discretion as to whether they notify customers that their
transfer has been pended. However, it is recommended that the old provider informs the
customer, except where the customer has specifically stated that they do not want the
transfer to take place before a certain date or event.
Data Security
ISA providers should liaise with one another to establish secure transfer channels in
accordance with their obligations under the Data Protection Act.
Resolution
TISA maintains two secure databases containing the contact details of ISA providers as
well as the Service User Number (SUN) details for electronic messaging. These
databases are for access only by other ISA providers, for the purpose of resolving and
escalating protracted transfer issues. All ISA providers should keep their contact details
up to date at all times on both databases to support the correct direction of transfers and
other communications between providers. Contact details should include telephone, e-
mail and address and office working hours, for telephone contact in particular.
The TISA databases should also be populated with contact details of where to refer
Transfer Out / Transfer In correspondence – as this can distinguish between where ISA
providers want the initial request correspondence to be directed (e.g. central address or
branch) and any ongoing correspondence.
Providers should inform TISA of a change in contact details at least 2 working days prior
to this change becoming effective via the following e-mail address -
isatransfers@tisa.uk.com.
Case abandonment
A case can only be abandoned where the customer is the primary cause for the delay.
Cases where the old provider is the primary cause for delay would not be abandoned and
the new provider would continue to pursue the case through the cross-industry chaser
and resolution procedures.
Where the new provider is only willing to accept a transfer by a given date and funds are
received after this date the new provider may choose to make contact with the customer
to consider possible alternatives to returning the funds. The new provider would retain
the right to repatriate the funds if no alternative solution can be agreed.
If the new provider is unable to accommodate the transfer or is unwilling to accept it due
to the current year ISA limit being exceeded as a result of ISA subscriptions made to both
ISA providers, then the old provider could use on of the following remedies, as set out in
Transfers in that cannot be accepted by a new manager:
o reinstate the original ISA, or
o offer another product to the customer and effect an internal transfer, or
o allow the customer to transfer to another provider
A case can be abandoned 2 months post the expiry of the initial 15 working day transfer
timescale.
On abandoning a case the new provider must inform the customer that they have
abandoned the case citing a reason.
Providers should review what action to take where funds are received post case
abandonment, they can either accept, decline or contact the customer to arrange a new
account for the funds to be put in (if for example the previous fixed rate is no longer
available).
Model cash ISA transfer authority form
Information about you
Title: First name(s): Surname:
Date of birth: National Insurance number:
(If you have one)
Permanent home address:
Postcode:
Contact phone number (including area code):
Information about the ISA you want to transfer
Name of existing ISA provider:
Sort code:
Account number:
Roll number (if applicable):
Please note
The terms and conditions of some ISA products do not allow only part of an ISA to be
transferred. Your existing provider may need to give them specific instruction before the
transfer can go ahead. Please check with your existing provider if you are not sure about
this.
Please answer either Question 1 or Question 2:
1. If you have not subscribed to this Cash ISA in the current tax year, please indicate here
how much of your Cash ISA you want to transfer.
Either if you want to transfer the whole Cash ISA tick here
or, if less, indicate the amount you wish to transfer here £…………………..
2. If you have subscribed to this Cash ISA in the current tax year,
Please indicate the total subscriptions made in the current tax year £……………….
The amount in your account representing current tax year subscriptions can only
be transferred in whole and not in part.
Please indicate here how much of your Cash ISA you want to transfer
Either if you want to transfer the whole Cash ISA tick here
or, £………………….. including current year subscriptions as stated above, tick here
or excluding current year subscriptions, tick here
or, if you only want to transfer your subscriptions for the current year, tick here
or, if you only want to transfer your subscriptions from previous tax years, tick here
Transfer authority
I authorise my existing ISA provider to transfer the ISA (account number above) to [new ISA
provider]. I authorise my existing ISA provider to provide [new ISA provider] with any
information, about the Cash ISA and to accept any instructions from them relating to the
Cash ISA being transferred.
Where I must give notice to close or transfer part of the existing Cash ISA, or the existing
Cash ISA contains a fixed-term deposit that has not reached its maturity date, I instruct my
existing ISA provider to either (tick the appropriate box)
1. wait for the full notice period to end or wait until the maturity date (whichever is relevant)
before going ahead with this transfer;
or
2. depending on the terms and conditions, carry out the transfer as soon as possible – I
will accept any consequential loss of interest or charges that may be applied.
Signed: ………………………………………………….. Date: …………………………
Transfer acceptance (your new ISA provider fills this part in)
We are willing to accept this ISA transfer in line with the customer’s instructions above, as
long as the following conditions are met.
The transfer proceeds are made up of cash deposits only
We receive the transfer proceeds no later than ……………….
Where the customer has shown above that they want to transfer subscriptions from the
current tax year, these must not be more than £ ……………….
For the purposes of the transfer of the ISA wrapper under the ISA regulations, the date
shown below will be the transfer date.
Date:
Name of new provider:
Sample S975 ITA 2007 certificate
Name and address of investor ISA Manager name
………………………….……… and address
………………………………….
………………………………….
CERTIFICATE OF DEDUCTION OF TAX
Statement for the purposes of section 975 of the Income Tax Act 2007
Account No ………………………………………..
Year to 5 April 20__
Date interest paid or credited …………/…………/………
1. Gross Interest £……………………
2 Income Tax Deducted £…………………….
3 Net Amount Paid or Credited £……………………..
Date……./……../………
Please keep this certificate
- it will help you complete your Self Assessment tax return (if you are sent one)
- it will be accepted by HM Revenue & Customs as evidence of tax deducted if you are
entitled to make a claim for repayment of tax.
A duplicate certificate will not normally be issued, and HM Revenue & Customs will not
necessarily accept statements or passbooks as conclusive evidence of tax deducted.
