In a statement released yesterday, BT denied claims made by managing director of Sirius Fund Management Kieran Kelly that individual balances and holdings of clients could not be obtained, stating the platform “provides up-to-date online client reporting that Mr Kelly and his clients have access to 24/7 via an online portal”.
“In addition, BT provides annual, tax and all legislatively required statements to clients,” BT said in the statement.
Mr Kelly also said while BT did reveal its relationship between itself and Core Equity Services, a subsidiary of Commonwealth Bank, he was not able to “ascertain the exact nature of the agreement between BT Portfolio Services and CORE Equity”, despite repeated requests.
BT said in terms of its outsourcing arrangement with Core Equity Services, the service provider is actually Australian Investment Exchange (AUSIEX), a subsidiary of CommSec.
“This arrangement is transparent – BT is a settlement participant of the ASX in its own right and a Chess sponsor for all direct equities held through BT Wrap, including Sirius Holdings,” said BT.
“Separately, the administration of the BT Chess sponsorship is outsourced to AUSIEX; however, the legal ownership of the legal assets remains with BT Portfolio Services and AUSIEX holds no title over this stock.”
Mr Kelly said he also asked BT if CORE Equity Services undertakes securities lending of BT Wrap assets.
While BT denied this, Mr Kelly said the company had failed to show any contractual proof.
BT responded by saying BT Portfolio Services does not facilitate securities lending programmes as set out in the custody section of Guidance Statement GS007 report, audited annually by PwC.
BT said the report is made available to clients on request and “provides independent substantiation of our internal controls and legal structure”.
“At the time of Mr Kelly’s original request, this document was not yet approved by our board of directors; however, it can now be provided,” said BT.
BT added that the group had informed Mr Kelly last week that it would send him the report upon receiving approval from the board.
