The plan follows Alliance Trust's decision to sell its retail savings platform to Interactive Investor for £40 million last last year, following months of speculation about the fate of the division.
Witan will stop administering the accounts in May when clients will be offered the option to transfer to the HL Investment Service as the default, or pick an alternative regulated provider of their choice.
‘We are confident that the proposed transfer will result in improved flexibility and choice for account holders, at a competitive cost,’ Witan chair Harry Henderson said.
‘We thank our members for the trust they have placed in us over the years in managing and administering their savings schemes. We will be doing all we can to ensure this necessary process will go as smoothly as possible.’
Hargreaves Lansdown chief executive officer Chris Hill added: ‘As one of the largest supporters of investment trusts in the UK, we are pleased to support Witan’s decision and look forward to welcoming these new clients to Hargreaves Lansdown.’
There will be no exit charges levied by Witan or transfer charges by Hargreaves Lansdown when clients are transferred.