Old Mutual Global Investors (OMGI) will close its Isa accounts and transfer 3,200 clients to Hargreaves Lansdown.
Old Mutual will withdraw its administration service for Isas on Tuesday 27 February and 3,200 clients, representing around £63m in assets, will be bulk transferred to Hargreaves Lansdown three days before this.
OMGI is also offering 5,600 investors the option to move investment accounts to Hargreaves Lansdown so they can hold all their investments in one place but this cannot be done by bulk transfer.
If investors go ahead with this transfer, OMGI will continue to manage the underlying investment funds they hold.
The holders of these accounts, representing assets of £136m, have been written to this week and given the option of transferring to Hargreaves Lansdown.
Warren Tompkinson, managing director at OMGI, said: “Following careful consideration, we have decided that our ISA investors will be best served by moving their holdings to a direct-to-consumer platform that can provide an up-to-date, online service.
“We believe Hargreaves Lansdown, with its customer-centric approach and user-friendly technology, will meet our investors’ needs going forward and we look forward to working with them on the smooth transfer of these assets.
“OMGI’s focus remains on offering flexible investment funds that deliver market-beating returns and we will continue to manage the clients’ underlying investments.”
There will be no exit charges levied on Old Mutual clients for making the transfer to Hargreaves Lansdown by either company.
This is the sixth transaction of this kind undertaken by Hargreaves Lansdown following deals involving JP Morgan, Jupiter, BlackRock and Legg Mason.
Chris Hill, chief executive of Hargreaves Lansdown, said: “Investor digital trends are moving rapidly with mobile access and functionality now an expectation rather than a nice to have.
"We are pleased to support OMGI’s decision and look forward to welcoming these new clients to the Hargreaves Lansdown investment service."
Hargreaves Lansdown said the terms of the transaction will not be disclosed.