Hargreaves Lansdown has snapped up thousands of Isa clients after Legg Mason decided to withdraw from offering its savings product.
All of Legg Mason’s Isa account holders, which amounts to £65m in assets under management, will be affected by the switch-over.
Policyholders who decide to move to the HL Vantage service, which offers a range of easy-to-manage savings accounts, will not be charged an exit fee.
Any Legg Mason Isa clients who have not switched to an alternative Isa provider by 15 June, or voluntarily redeemed their savings by 30 June 2016, will be transferred in bulk to Hargreaves Lansdown.
Ed Venner, head of global distribution business management at Legg Mason, said the decision to pull out from its Isa offering was made “after careful consideration”, and was in “the best interests” of its clients.
“We are aware Isa holders increasingly value the ability to access and manage their accounts online, together with other features and functionality that our Legg Mason Isa does not currently offer,” he said.
From 1 July, the Legg Mason Isa will no longer be available.
This comes just months after the asset manager announced the takeover of three firms, including a real estate firm and two ETF businesses.
John Stirling, director of Walden Capital, said: “If Legg Mason don’t want to be in the business of retail Isas, well that’s a decision for them. And since it has to go somewhere, I would imagine that Hargreaves Lansdown is a commercially sensible option.
“If it is not a good option for individual clients then I think the 15 June deadline to arrange an alternative is a little sharp.”