OMGI ISA customers to move to Hargreaves Lansdown
OMGI will no longer offer Individual Savings Accounts (ISAs), and its existing 3,200 clients will be transferred to the Hargreaves Lansdown platform. The transfer will be free of exit changes.
OMGI said in a statement: “Against a backdrop of significant technological innovations, OMGI has concluded that its current service in relation to ISAs and investment accounts no longer meets the expectations of its investors. For example, investors now reasonably expect to be able to have online access to their investments, and this is something that is not available via the existing OMGI service.”
The group will carry out a bulk transfer of its ISA customers to Hargreaves Lansdown with effect from 24 February 2018. This tops up Hargreaves existing one million-strong client base.
OMGI is also offering investors the option to move investment accounts to Hargreaves Lansdown so that they can hold all their investments in one place, and benefit from a broader range services (such as online access). This cannot be done by bulk transfer. OMGI will continue to manage the underlying investment funds held by investors.
OMGI said it had chosen Hargreaves Lansdown for its ‘award-winning, direct to consumer service, online account management and dealing, as well as the option to manage investments by telephone and post’. Warren Tonkinson, managing director, 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.”
The move is part of a wider trend of fund management groups moving away from providing investments directly. This is the sixth transaction of its type – the previous five were with: RIT, Legg Mason, JP Morgan, Jupiter and Blackrock.
Should I stay or should I go?
Hargreaves Lansdown is the UK’s largest investment platform, and scores consistently highly for its choice of investments and customer support. OMGI investors who are switching in will be able to manage their investments online, and switch more easily between funds. There are cheaper platforms, but any assessment of cost should include any exit fees payable for switching from Hargreaves Lansdown.
There will be those who have an existing relationship with other platforms and may want all their holdings in one place, but Hargreaves Lansdown is likely to be a good option for most other OMGI clients.