'Ground Control to Major Tom': Fund boss sues Barclays for £220k after it took nearly three years to pay out

Terry Smith, who runs the £5.3billion Fundsmith Equity fund, is suing Barclays

One of Britain's most prolific fund managers is suing Barclays bank after it took almost three years to move money from an account.

Terry Smith, who runs the £5.3billion Fundsmith Equity fund, has accused the bank of failing to transfer hundreds of thousands of pounds into his fund so he missed out on more than doubling his money.

Smith, who was chief executive at broker Tullett Prebon, is suing Barclays for £220,000 for negligence after he asked for £330,000 to be transferred from his Aethelflaed Investment fund to the Fundsmith Equity in September 17, 2012. 

He contacted the bank again five days later on September 23 when the transfer had not been carried out.

Smith says that on the date he wanted to transfer the money in 2012 a unit of the fund was worth £1.28. 

By July 2015, the cost of one unit in the fund had risen to £2.13 – an increase of 166 per cent. Smith claims that would have equated to a profit of £219,049 had the transaction been carried out.

Barclays, which is fighting the claim, denies any negligence or causing any financial loss. 

It says that while Smith did email – in messages titled 'Ground Control to Major Tom' – he had sent them to incorrect individuals, and that it also told Smith it was unable to act on emailed instructions for payments.

The bank asked him to send a letter with the instructions, which it received on October 5. But Barclays says it was then concerned that the signature on the letter was not correct.

Barclays then asked Smith to visit a branch with identification to make the transfer, which he did not do.

A spokesman for Smith said: 'To say that the service the claimant and Terry received from Barclays Bank was atrocious is an understatement. 

'Aethelflaed is compelled to pursue this action and looks forward to hearing the court's decision.'

A Barclays spokesman said: 'We cannot comment on a matter which is currently in litigation, save to confirm that we will be vigorously defending this case.'

Fundsmith did not comment.