Delays in accessing your money

When I first joined this industry some 35 years ago, I embarked on a series of professional exams to help expand my knowledge and further my career. One of the things I remember most vividly were the terms ‘T+2 and T+5’ which referred to either a 2-day or 5-day settlement for trades once sale instructions were placed on investments.

With the advancement of technology and systems over all of those years, you would think that trying to access your own money would become faster and easier, not harder. However, many of the larger traditional investment houses and life insurance companies have failed to make the necessary investments in either systems or people, something that was highlighted during the COVID-19 lockdown months where some providers literally ground to a halt.

If you add to the lack of investment the exponential growth in compliance and accompanying regulations, then transactions which you would expect to be carried out ‘at the touch of a button’ can now take weeks or even months to conclude which is as extraordinary as it is unacceptable.

I appreciate that evidencing the source of wealth for new investments might make sense, but asking for a justification as to why a client might have the temerity to want to access their own money is surely a step too far and an unnecessary intrusion on one’s own activities.

This can be infuriating for both client and adviser, as we endeavour to make recommendations where, in most instances, there should be no barriers or penalties to accessing your funds. This can prove extremely frustrating for my team, as they try hard to strike a balance between chasing payments on your behalf while not overburdening providers with calls which do not allow them time to process transactions. 

We always endeavour to process withdrawals expediently on behalf of our clients, but where ‘pushing the button’ is not within our gift, certain aspects remain outside of our control.

I appreciate this situation is often unacceptable and, in many respects, inexcusable. We are not alone as an Independent Financial Advice (IFA) business which has been established for over 25 years, in that we interact with multiple product providers which can lead to inconsistencies in the client experience. 

To this end, we have made a strategic decision to partner with a platform provider that can demonstrate an ability to deliver an excellent client experience with consistent service delivery. Over recent months we have undertaken a review of the market and will provide further details shortly on who we have chosen as our platform provider and what this means for our clients. This strategic partnership will also provide certain economies of scale in terms of fees and service level support.

In the meantime, all I would ask is that you give us much notice as possible when you are thinking of accessing monies and show some patience in waiting for your funds, safe in the knowledge we will do everything within our powers to extradite your money as soon as we are able.