Greg Tanzar
BT Financial Group (BT) will refund customers after it discovered that some of its Wrap and SuperWrap customers have been paying adviser fees in excess of disclosed percentage ranges. In some cases, there was confusion around whether the percentage ranges disclosed represented the maximum adviser fees that could have been charged.
BT discovered the problem, self reported to ASIC of their own accord and have kept ASIC informed.
BT undertook a review to identify customers potentially impacted, and to ensure that they were compensated where appropriate. BT has also issued revised disclosure and put in place strengthened operational controls to prevent similar occurrences in the future.
ASIC Commissioner Greg Tanzer said: ‘One of ASIC’s priorities is to work to ensure consumers can have confidence in their financial institutions. It is important financial services companies charge customers the fees they have advertised and disclosed, and where this hasn’t occurred, we expect errors to be swiftly rectified.’
‘We have also written to all platform operators to remind them of their significant breach reporting obligations’.
ASIC acknowledges the cooperative approach taken by BT in this matter.
Since May 2013, BT has been contacting affected customers and, where appropriate, compensating them. BT’s review and remediation process continues.
All customers affected will be advised of any compensation by August 2013. There is no need to lodge a claim, but customers who are concerned and want to discuss the matter can contact the BT Customer Relations team on 1800 812 600.