I'll first preface this by saying I'm not asking anyone to provide legal or financial advice but the situation is unexpected so I'm not sure what to do.

It's something out of left field for me and a warning to other ppl using a commsec margin loan to fund SPP purchases.

In short I received a call today saying I had a margin call and my LSR is nearly 110%.

Now I paid for my BKW SPP with the margin loan but I'm thinking ummm how did I get a margin call when my shares went up in value today.

I had previously called up Commsec about funding my SPP and either I could draw down on the net cash and collateral in my account which wouldn't have provided me with enough funds to take up my full rights or I could fund it through the loan.

So I decided to fund it with the loan as I, the position seemed a bit marginal at the time but I decided to go through with it.

Now I understood that if the value of my shares fell and calculated that if there was a scale back of > 2/3s and the money was returned to me I could get a margin call.

Now comes the interesting bit apparently Commsec deals with SPPs by drawing down your loan by the amount you request. They apply a 0% LVR to the SPP money before you get allocated but allow you to go into a long term margin call with an LSR of 90% allowed.

That is a lot more generous an arrangement than what I had expected but not for me as most of my money is in shares with a 0% LVR.

Commsec processed my SPP form but in doing so placed me in a margin call even with their less restrictive LSR.

I thought it was supposed to be impossible to get a margin call by buying stock and there was supposed to be a buffer in case the SP of the stock fell.

Apparently not for Commsec when they're dealing with SPPs. I'm not sure if that is even legal.

At this point I'm going to have to sell some stock on Monday to get under the 90%, its not the end of the world but I'd preferred to not have the hassle (my heart skipped a beat when I heard the msg on my phone) and I'd rather keep the stock that I'm going to have to sell than the BKW stock I'm gonna get from the SPP.