In a statement, BT chief executive Brad Cooper said the changes are intended to keep the business in-line with changing market pressures.
Under the new pricing model, clients will be able to access BT Panorama Investments and BT Panorama Super for a 0.15 per cent per annum asset-based administration fee (capped once their assets reach $1 million) and a flat account fee of $540 per annum, the statement said.
Additionally, clients will be able to “combine up to four family account balances” in order to reach the fee cap for their household.
“The Panorama changes announced today represent a move away from pricing that has historically been differentiated between different advice licensees,” Mr Cooper said.
“Our new pricing will provide advisers and their clients access to the same simple, low capped administration fees on BT Panorama.”
The statement noted, however, that clients will need to elect to be moved to this pricing model, and will otherwise remain on the existing payment structure.
Beyond the changes to fees, BT also announced the launch of BT Panorama Compact, which will provide a “simpler investment menu” to clients for a flat account fee of $180 per annum and 0.15 per cent per annum asset-based administration fee.
“BT Panorama Compact customers will also benefit from the ability to group up to four family accounts to take advantage of the asset-based administration fee caps,” BT’s statement said.
The company will also run an online adviser services hub from October 2018, the statement added, with the hub available to self-licensed advisers as well as dealer groups.
This new BT Open Services hub will provide access to support resources in multiple fields, including “governance, advice tools, investment research, licence transition support, training and marketing”, the statement said.
“BT Open Services will assist advisers and dealer groups to continue to run professional, compliant and client-focused advice businesses in a cost effective way. The hub will be available to any adviser irrespective of whether they have a relationship with BT platforms,” said Mr Cooper.
Interesting that IOOF are the biggest Wrap client and have been shafted by BT
Be interesting if they jump ship to Netwealth or Macquarie
still too expensive
Only if you add the licensees’ fee!
How is this expensive compared to other wraps available? Maybe my quick maths if failing me but it seems like this makes it market leading?
Still way out of market if you take aggregation into account – the account fee of $540 applies for each account. Plenty of smoke and mirrors here. Plus the uncapped expense recovery on super of $90 + 0.03%
this is cheaper than most of their competitors
v hub netwelath
Totally agree, smashes netwealth off the park, people are making comments without an understanding of all fees all platforms charge
the silence from everyone else is not great
shows you how badly prepared they are
coles v woolies the decisions are made and announced asap
For low balances you have a decent argument on the $540 fee, but the compact version is OK for a cheap and cheerful and delivers more than many cheap and cheerfuls out there.
Fee aggregation has a bit of a point too.. but it still wins in most cases now.
I was going to use it for some new clients but realised I’m keeping some small super accounts alongside pension accounts and the $540 applied to all so I used MLC Wrap instead (which combines all the balances for fee aggregation).
If you have better suggestion for that scenario I’d love to hear it as I use whatever it takes to get the best outcome!
Having said all that this really does appear comfortably to be the best overall deal for a very solid Wrap that I am aware of – in most circumstances that you would want to use one for. Very happy with BT here as I had no indication this was coming even from the BDM I work with there.
Pity the interest rate offered on cash is 0.28%pa!
Are they rebating the buy/sell costs to move from BT Superwrap to Panorama, for like for like products?
They don’t charge one – if the funds are offered on both platforms it’s a seamless transfer. Takes around 3 weeks and it’s all done, no CGT no buy/sell.
thanks Fellx.