BT points admin clients to Heffron

BT Heffron SMSF

BT will give SMSFs the option of choosing their own administration firm but has held discussions with Heffron about transition its clients to the latter.

SMSFs using the BT Panorama administration service have been pointed in the direction of Heffron under an arrangement the former said will create a smooth transition and continuity in services.

In news first reported by selfmanagedsuper earlier this week, BT has announced plans to close its Panorama SMSF establishment and administration services on 23 December, but further information provided to this publication shows that while BT will transfer administration services to any provider chosen by an SMSF, it has entered into discussions with Heffron to accept BT’s SMSF clients.

“You are free to nominate any service provider you choose. However, to assist with a smooth transition and continuity of administration services, BT has held discussions with another administration service provider, Heffron,” a note from BT to its SMSF clients stated.

“Heffron has agreed to honour all existing fees (including discounts where relevant) for administration, audit and company administration for the 2021/22 FY and 2022/23 FY.”

Heffron managing director Meg Heffron confirmed the arrangements with selfmanagedsuper and noted BT clients would not be disadvantaged in any way as a result of the move.

“BT will accommodate any request to any client to move anywhere, but they have been working with us to provide a seamless transition option for those who want to move to us and they have worked with us to structure some fee commitments to ensure their clients are not disadvantaged by the move,” Heffron said.

“We’ll start charging from January for the funds that transfer across to us and do the work for the full year and also honour any fees that have been paid and do that for the next year and a half – till 30 June 2023 – with the intention of making it easy for SMSFs and their advisers.

“We’re hoping to see a large number of funds transition early in the new year as returns are finished because we want to get them settled well and truly before the end of this financial year, because we want to make sure we’ve got everything up to date so that it’s quite seamless for them.”

The closing of BT’s SMSF administration service has also attracted offers from other administration providers, with SMSF Alliance indicating it will also willing to pick up funds seeking a new administrator.

In a note sent to advisers and accountants, SMSF Alliance indicated it will pick up the administration previously conducted by BT, but will only charge for half a year based on the fees paid by an SMSF to BT.

“BT have already been paid their base SMSF administration fees for the six months to 30 December 2021. We have been advised that they will refund these fees for any SMSFs that transfer to our service. We are prepared to accept this amount as payment of our base fees for the entire 2021/2022 financial year,” the note stated.

“This means that we will not begin charging our monthly base fee until 1 July 2022 which will be for the 2022/2023 financial year,” SMSF Alliance stated, adding that regular fees would start from 1 July 2022 but “as our fees are generally lower than BT’s this should provide a further saving”

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