HSBC is in exclusive discussions to take over the running of Gartmore's back office administration.
Under the deal approximately 105 Gartmore staff will transfer to HSBC subject to final negotiations and a staff consultation period.
HSBC will then provide transaction processing and related foreign exchange, custody, portfolio and fund accounting and performance measurement for Gartmore's European institutional and retail product ranges.
HSBC Securities Services Europe head Mike Martin says: “Our securities servicing business is a very important part of HSBC and one for which we plan major growth over the coming years. We are delighted to have been chosen by Gartmore to support its business.
“This arrangement will enable us to leverage Gartmore's high quality operations, and related technology teams and systems, to strengthen our outsourcing proposition to the European investment management industry.”