Nate79 wrote: ↑Tue Oct 29, 2024 6:55 am
beyou wrote: ↑Mon Oct 28, 2024 10:28 pm
Many brokerage, mutual fund and bank employees have restrictions on which brokers they can have an account. My long time fund management employer did NOT allow Vanguard as your broker until recently. One could lose their job for violation.
I don't see how this is Vanguards problem. They are giving the individual way more than sufficient notice to move or be transitioned. If transitioning to brokerage puts their employment at risk they should move to somewhere that is allowed. The thing is they don't WANT to do it so they keep resisting. So this is not a "cannot" but a "don't want to."
I guess Vanguard could liquidate instead of forcing a transition.
Your employer picks a list of brokerages.
As you well know, not all brokerages allow all funds to be transfered in and/or no further purchases. There are still some Vanguard funds with no ETF equivalent. So this means some would be forced to liquidate some of their holdings, possibly with tax impact.
Call it what you want, a question was asked wanting to know who is impacted. There may be others, but this is a non trivial number of people. Many begged their employers to allow Vanguard as a broker to avoid having to liquidate unique Vanguard products.
There is also an invasion of privacy in having ANY broker, even if Vanguard is allowed as your broker. All trades and holdings are reported to employers of these fin svcs employees affected. And they must ask for permission to trade many products such as ETFs. Frankly had they forced me, I would have not only left Vanguard fund products, I would have told the many I advise to avoid Vanguard funds for poor treatment of customers. But they did give many years for this to be worked out. My employer relented and I retired avoiding any further restrictions. Had that not happened, Vanguard would have lost a great deal of assets. I would NOT hold their funds at another broker even those feasible, after poor treatment.
And if you think Vanguard shouldn’t care, then why shouldn’t they just raise the er on funds, keep adding brokerage fees, etc ? They were supposed to make investing accessible and affordable. Guess you think it ok to abandon that mission ?