Managed Funds Is BT the worst WRAP provider?

Hi Guys,

Does anyone else out there have a BT WRAP/Margin loan account?

I have a couple of investment WRAP's linked to a Margin Loan and have had continual problems with them since inception some years ago. Problems like account errors, unexplained margin calls/liquidations and the inability to act on instructions. Basically, due to their incompetence and faulty platform, they have failed to provide an efficient, reliable and error free service.

They have also either ignored or fobbed off all complaints I have made to them regarding their less than satisfactory service which has resulted in my having to file a complaint with the Financial Ombudsmen Service (FOS).

I would be interested in hearing others experience with BT and any alternate WRAP providers, as when the dust settles on this I will need to look for another provider for all my managed fund/equity holdings.

Cheers,

PW

 

Hi Pennywise,

Sorry to hear about that. Linking multiple accounts to one margin lending account could make it messy. I deal with client's super BT Wraps and haven't had any problems. I am surprised that they haven't gotten back to you re the complaints and that you've had to taken it to the FOS. Do you have a planner/adviser attached to your wrap?

Cheers,

Dan

 

Hi ASXB,

The only thing messy is BT's; customer (dis)service, WRAP desktop system and back office processing which is abysmal.

Having two wrap accounts linked to one margin loan (ML) is not rocket science. If they can design an on-line WRAP desktop system with all its sophistication and complexity then it should be able to cope with an extra WRAP account and its holdings. The problem here is the ML and WRAP systems are not linked for straight through processing and any changes in one have to be done manually in the other by back office personnel who almost always get it wrong!

I could quote you chapter and verse on the errors, omissions and stuff ups that they have subjected my accounts to since inception.

And they are just not interested in improving there systems when you bring these things to their attention! Instead they just ignore your representations, stonewall you or in the final insult suggest their product "may just not be for you".

As I said, I would be interested in hearing of anyone else's experience with BT and any suggestions for alternate WRAP providers that offer full access and control to the client.

Cheers,

PW

 

HI Etrade- BT Linkage

Hi guys,

Has anyone obtained a ruling from the Onbudsmans Service, or complained to ASIC at all about this? Its actually false advertising & breaches the corporations act in that Etrade are required to provide an adequate level of service.

I had a similiar issue with both Etrade & BT. I actually complained in 2006 and they said that they had fixed the system. Their website even advertises that they constantly update their software and hardware.

The website states that clients are holding shares linked to a BT Margin Loan account but for some reason when you click on it and try and sell it says error no holdings..... you then have to wait on hold for an extensive period of time whilst obviously the market is quickly moving for someone to manually put the order in.

Apparentally if you buy shares over the telephone and try and sell them online it doesn't register for 3 days. However, the website still deceives you by showing the holdings under the portfolio section and even allowing you to click the sell button. They have known about this error for years and yet continued to provide me with this service.

I complained to ASIC and they said that they would only do something about this if the problem affected many other clients. Is anyone here willing to join me?

 

Hi 4696,

Have you made a complaint to either BT or Etrade? And if so, did they ignore or fob you off like they did with me?

Is Etrade owned by BT/Westpac?

As I said the problem with BT is "the ML and WRAP systems are not linked for straight through processing and any changes in one have to be done manually in the other by back office personnel who almost always get it wrong"!

Did the transactions eventually go through properly or were there errors and omissions as in my case?

I don't think they are going to resolve these issues anytime soon due to the GFC. Even one their call centre operators told told me in confidence that they have shelved further development on these systems!

All you could probably do is file a complaint, like I have done, with the Financial Ombudsmen Service (FOS) but they will only really consider it if you can prove some kind of financial loss. They told me they can't "direct a financial institution to lift their game or improve their service" even if it is obvious that there are systemic issues and problems! I think ASIC would be of the same opinion.

Cheers,

PW

 

Hi,

I had an account with BT Margin Lending that was linked with Etrade. I had issues with them in 2006 whereby it took 1.5 hours to place a sell order..... this happened again last year and I suffered a substantial financial loss. They even admitted in their letter that their systems were not designed to meet my needs! Ironically, their staff all confirmed prior to trading with them that all the trades would enter the market via a straight through processing system. BUT this DIDNT WORK!

I complained to ASIC who said that this is a civil dispute. They said that they can only get involved if this is a substantial systematic problem affecting many different clients. I find this absurd that they can let Etrade continue to do this. They were extremely arrogant towards me and in a similiar scenario to yours they refused to address my complaint. I wrote to the CEO of Etrade and still they failed to provide a full response to my complaint.

I wanted to appeal ASIC's decision and hopefully locate others who suffered a similiar fate and obviously prove that this is not a one off situation. BT actually continually tell clients that the systems are fully integrated and it the STP works in all cases. I even had the dates and times that I called, ETRADE and BT refused to provide copies of the tapes.

Its just a scenario that I think a few people who have principles behind their actions could band together to challenge these big corporations to be accountable!!!

 

FOS advised me last week that it would be at least another few weeks or so before they bring down a determination.

As mentioned, I would be interested in hearing others experience with BT and any alternate WRAP providers, as when the dust settles on this I will need to find another WRAP provider for my managed fund/equity holdings and a new margin loan provider as well.

Anyone out there care to suggest a WRAP provider and margin lender that they are using and happy with?

Cheers,

PW

 

BT Margin Loan

I've had similar problems with my BT Margin Loan overt he last 2 years where they have continuously stuffed up with chronic errors in data entry over inflating my portfolio over the entire period with them as well as duplicating transactions just to name a few.

Unofrtunately this resulted in a significant loss when they suddenly corrected the errors bringing my account into large margin call and then startered liquidating my portfolio.

I recently complained to FOS as well and waiting for a favourable outcome in the next couple of months as BT is just denying any responsibility at all.

And Pennywise, have you considered using Macquarie Wrap and Margin Loan solutions - I haven't used them personally but I do know Macquarie has decent customer service centre, very good internal controls and they have a great Margin Loan product which I would consider using the in the future where they do not liquidate your portfolio but instead just take any distriubtion you receive and attribute it towards the margin call and I think they ask you to contribute 1% of the margin call as a minimum every month so it avoid the risk of a margin lender selling off your portfolio in the most unfavourable times.

 

Pennywise,
Try Netwealth, admin cost is higher but $20 a trade, a lot of traders use it buy sell on same day. BT is cheaper is admin but dearer on the trades, a lot of your problems may be fixed as they have migrated to Comsec for trading as of last week.
Cheers, roidz