Old Mutual Global Investors is exiting the ISA and investment account markets and planning to transfer most of its 8,300 clients to Hargreaves Lansdown.

HL will receive approximately retail ISA clients, representing about £63m ISA AUM, from Old Mutual Global Investors in a bulk transfer to Hargreaves Lansdown.

Additionally, approximately 5,100 Old Mutual retail investors with investment accounts, representing a further £136m, are being offered the option of transferring investment accounts. Investors have been written to this week.

The Bristol-based investment provider and wealth adviser says its the sixth transaction of this type for Hargreaves Lansdown where an exiting provider has transferred clients. The previous 5 were: RIT, Legg Mason, JP Morgan, Jupiter, Blackrock.

The terms of the transaction are not being disclosed. As a result of the deal, OMGI retail investors have the option to transfer their holdings free of exit charges to the Hargreaves Lansdown investment service.

OMGI says it has concluded that its current service in relation to ISAs and investment accounts no longer “meets the expectations” of its investors. One issue is that it does not offer investors online access to their investments.

OMGI will withdraw its administration service for ISAs from 27 February and intends to carry out a bulk transfer of its ISA customers to Hargreaves Lansdown with effect from 24 February 2018.

OMGI is also offering investors the option to move general investment accounts to Hargreaves Lansdown so that they can hold all their investments in one place. This cannot be done by bulk transfer. For investment accounts OMGI will continue to manage the underlying investment funds held by investors.

Warren Tonkinson, managing director, OMGI: “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.”