VBS Upgrade and Agent Authorization

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oneleaf
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VBS Upgrade and Agent Authorization

Post by oneleaf » Wed Sep 21, 2016 1:28 pm

So there has been some discussion over the past couple years of people having to re-submit agent authorization forms for accounts that went through the Brokerage upgrade process. I wanted to share my experience as well as ask others what happened with their accounts, since I still have two accounts left to upgrade.

I recently had good success with a number of accounts that got upgraded and maintained its full agent authorization. However, they all had the following characteristics:
  • All accounts already had a linked brokerage with the old platform (Vanguard mutual fund account including a settlement account PLUS a connected brokerage account).
  • The Upgrade link was available FROM the agent's account. For instance, I am the agent. My spouse is the account holder. I was able to do the upgrade from my login.
These accounts went very smoothly.

However, I have 2 more accounts with the following characteristics:
  • They are JUST Vanguard mutual fund accounts WITHOUT a brokerage account linked to it.
  • The Upgrade link is unavailable FROM the agent's account. For instance, I am the agent and my spouse is the account holder. I have no upgrade link on the account, but my spouse does when she logs in.
Will the last two accounts keep agent authorization? My representative says no guarantees, but he THINKS it will be no problem. No guarantees though. Anyone have any experience with these types of accounts? Thanks!

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HueyLD
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Re: VBS Upgrade and Agent Authorization

Post by HueyLD » Wed Sep 21, 2016 1:49 pm

Did the account numbers change for those with existing brokerage accounts? If the account number did not change, it might explain why the agent authorization carried over.

I remember someone posted in more than one threads indicating that he had to fill out a new agent authorization form after upgrading his accounts from mutual funds only to the new brokerage account because of account number change. In that case, it makes sense because a new account number implies a new account.

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oneleaf
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Re: VBS Upgrade and Agent Authorization

Post by oneleaf » Wed Sep 21, 2016 2:17 pm

HueyLD wrote:Did the account numbers change for those with existing brokerage accounts? If the account number did not change, it might explain why the agent authorization carried over.

I remember someone posted in more than one threads indicating that he had to fill out a new agent authorization form after upgrading his accounts from mutual funds only to the new brokerage account because of account number change. In that case, it makes sense because a new account number implies a new account.
The account numbers did not change.

However, it is worth noting that these agent authorizations have been in place for a very long time (a decade?), and during that time, new brokerage accounts (with new numbers) have been open, and they automatically took on the agent authorizations. In fact, the language in the agent authorization forms is good for future accounts. The fact that it doesn't work for new accounts in the new platform seems to be a very arbitrary thing.

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HueyLD
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Re: VBS Upgrade and Agent Authorization

Post by HueyLD » Wed Sep 21, 2016 2:34 pm

My VG rep said that there was a recent change in PA law and VG' accounts have been under the new law for a few months. The change requires two witnesses to sign on the agent authorization form and that's why the new agent authorization form is required to be signed, notarized and mailed in.

I think you may be required to resubmit the form for those mutual only accounts after the upgrade.

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oneleaf
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Re: VBS Upgrade and Agent Authorization

Post by oneleaf » Wed Sep 21, 2016 3:55 pm

HueyLD wrote:My VG rep said that there was a recent change in PA law and VG' accounts have been under the new law for a few months. The change requires two witnesses to sign on the agent authorization form and that's why the new agent authorization form is required to be signed, notarized and mailed in.

I think you may be required to resubmit the form for those mutual only accounts after the upgrade.
Ah in that case, I may have had all my new-ish accounts opened before this change, which is why accounts made after the agent authorization form was in place still took effect. I guess I will have to see what happens when I upgrade these last two accounts.

Faith20879
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Re: VBS Upgrade and Agent Authorization

Post by Faith20879 » Tue Nov 08, 2016 10:50 am

hello oneleaf,

I was wondering if you have any updates on your progress. Did you have to send in a new agent authorization form?

We've just recently upgraded and received some mixed results. Before this I had full authorization to my spouse's accounts that included
1. taxable (mutual funds only)
2. Rollover IRA (funds and brokerage)
3. Traditional IRA (funds only)

My spouse used the on-line account permission tab to grant me the rights about this time last year. We didn't use the form route.

The authorizations for accounts 1 and 2 were carried over but not for 3. Our VG rep did not have an answer for why the differential treatment except that "you need to send in the form".

One other odd thing was, I also lost the rights to download all his tax forms such as 1099 or 5498. I now see only my own tax forms.

Thanks,
Faith

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