Old Mutual Global Investors to close its Isas: what will happen to your account? 

Thousands of customers who have an Isa or dealing account with Old Mutual Global Investors will have to move to another provider because the firm will stop offering both services in February.

Investors currently have £63m in Isas and £136m in investment accounts held with OMGI. The firm intends to carry out a bulk transfer of its Isa customers to Hargreaves Lansdown, Britain’s biggest investment shop, on February 24.

Customers do not have to choose Hargreaves as their new provider, but will need to contact OMGI if they wish to make alternative arrangements. The customers affected have been written to this week.

Those with regular investment accounts cannot be moved by bulk transfer and can choose to transfer to any provider.

OMGI is ceasing to offer its Isa and investment account services because they "no longer meet the expectations of its investors". It did not, for instance, offer online access.

Whether they choose to move to Hargreaves or head elsewhere, customers will not be charged exit fees. The transfer won’t affect the status of any OMGI funds, such as the popular Old Mutual UK Alpha fund, held within an account. 

Hargreaves has struck similar deals with asset managers in the past, including Legg Mason, JP Morgan, Jupiter and BlackRock.