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Old Mutual GI hands Hargreaves £63m account as it axes ISAs

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Old Mutual GI hands Hargreaves £63m account as it axes ISAs

Hargreaves Lansdown is to take on 3,200 client accounts from Old Mutual Global Investors (OMGI), as the funds business closes its internal ISA wrappers. 

OMGI clients currently hold around £63 million in internally-administered ISAs, which are planned for closure in February next year. OMGI will continue to manage the underlying investment funds, however.

A further 5,100 retail clients with assets of £136 million have been offered the option of transferring their investment accounts. 

The company said the service it was able to offer 'no longer meets the expectations of its investors'. 

Warren Tonkinson, managing director, OMGI, said: 'At OMGI, we are dedicated to ensuring investors’ best interests are at the heart of any service we offer.

'Therefore, 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.'

Hargreaves Lansdown chief executive Chris Hill (pictured) added: '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.'

There will be no exit charges when investors are transferred to Hargreaves Lansdown. The firms did not disclose the terms of the transaction. 

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