New data has brought to light how issues with transfers could be holding investors back. The research of 2,000 investors with £10,000 or more investable assets, found that over half of investors surveyed (54%) have never transferred their ISA, GIA, SIPP, or pension, to another provider. Of those that have, around two-thirds (61%) experienced an issue.
The study conducted by UK investment platform CMC Invest found a quarter of all investors surveyed who had not transferred before, admitted that the complicated process stops them from transferring between providers.
Of those who had transferred providers, one-third (32%) of investors surveyed experienced increased stress about their money during the process. An unsurprising finding when 32% also cited experiencing delays in the transfer process.
Investment transfers are infamously tricky to manage offering poor visibility of the process, and the research found this to be true for just under one-third of the investors surveyed — of those who have transferred, 30% experienced issues with contacting customer service, 28% felt there was poor communication throughout the process, and a quarter (25%) could not track the process.
The data found that investors who have been investing for more than ten years were the least likely to have transferred providers, with 63% having never transferred their investments before.
Jason Law, Investment Operations Manager at CMC Invest and chair of CMC Group’s ISA governance committee comments, “The data points to an industry-wide issue. When moving money, investors shouldn’t have to accept that the process is going to be troubling, or stressful. Money is personal, and it’s no wonder that losing sight of it is stressful.”
He continues, “It’s especially worrying if transfer woes are stopping people from moving platforms. To know that nearly two-thirds (63%) of those surveyed investing for longer than ten years have never moved platforms presents a burning question. Are they missing out on lower fees, higher returns, and newer features that could be better suited to their needs?
All providers need to address the issues investors are facing, otherwise we not only risk investors missing out on higher returns but potentially sacrifice industry innovation due to a lack of competition.”
Last year, CMC Invest launched a completely digital, hassle-free, in-app transfer feature that allows investors to complete a transfer in as little as 30 seconds. Recognising how stressful the process can be, investors can track the progress of their transfer at every stage of the process all at the click of a button.
