Call us: 0800 347 257

Transfer not actioned

Daniel had invested his retirement savings with a fund management company. In April 2018 Daniel decided to change his funds from an equity fund to a conservative fund. Daniel went online and believed he had actioned this transfer to occur.

After a number of days and some miscommunication, Daniel was informed that his funds had not been transferred and were still in the original account.

Believing that Daniel had actioned the transfer, a staff member from the fund management company told Daniel that he would be compensated for any loss that had occurred due to the delayed transfer.



The parties disputed whether Daniel in fact requested the funds be transferred on the day he claimed.  Daniel claimed that he logged on to his account and did request the transfer, and that the fund manager’s failure to action this request resulted in a $1200.00 loss for Daniel. The fund manager claimed that Daniel did log onto their website that day, however they disputed that he logged into his actual account or requested the transfer. When the fund management company declined to refund Daniel’s loss, Daniel complained to FSCL.



We agreed with the evidence supplied by the fund manager that Daniel had only logged into their website, but that he had not requested the transfer. We concluded the fund manager did not cause Daniel’s loss.  Daniel’s error in believing he had requested the transfer when this had not occurred was the reason for his loss.



We recommended that Daniel discontinue his complaint. Daniel accepted this recommendation.


Insights for the participant

Although the fund manager was found to not be at fault in this case, their response to Daniel, and the time it took for the fund manager to process his complaint resulted in him leaving them as a customer. Daniel was at the time only a small investor but was looking for somewhere to invest a large amount of money. He chose to go with a different fund manager. Better communication and an efficient complaints process could have retained Daniel as a customer.