Credit due to BMW Customer Services...
"Thank you for your recent email regarding your BMW Z4M. When you first pair a compatible mobile handset it will transfer the contents of your telephone contact directory. Where your phone book may change over time, you will need to completely remove and re-pair the Bluetooth connection. To do this, you will not only need to remove the car from your handset but you will need to remove the handset from the car. Once you have successfully removed each device from one another, then you are able to pair the handset again, which will transfer the updated contact directory. Please note that not all handsets allow you to transfer contacts stored directly onto the SIM card and will only transfer those stored onto the phone memory. I understand that this method is not necessarily ideal and you may be interested to know that we have since developed different systems whereby ‘newer’ vehicles will continually update the phone book content."
and
"If you would like to update your phone book, you will need to start the pairing up procedures all over again, but first by logging the phone off the system, as follows:
Hold the button (Speech Button) above the storage compartment down, then after 3 seconds, turn the key to position 3, and then release after 3 seconds.
‘BLUETOOTH PAIRING’ will then appear on the screen.
-Press the Speech button, for 10 seconds, until you hear the triple acoustic signal. ‘PAIRED DEVICES DELETED’ appears on the display.
-Switch the vehicle off, this will disconnect the phone book altogether.
You can now pair the phone from ‘scratch’ which will transfer your current phone directory."