IQ Financial Advisor – Content page

Avant-garde investors were denied online access to account statements, trade confirmations, tax forms and more for several days.

Users took to social media late last week to complain about information access issues and on Monday the company posted a post attributing the issues to a third-party service provider.

“Some sending and requesting checks by mail may also be delayed,” noted an error message, adding that the transaction history was up to date and could be a back-up to ensure transactions are proceeding and to verify transactions. sales.

Vanguard did not name the service provider, but the post said the pension plan and unqualified accounts were affected.

“Our teams have been working on this issue around the clock and our customer service representatives are available to assist customers who need immediate assistance,” a spokesperson for Vanguard told Financial Advisor IQ. “While our teams are actively working on a resolution, Vanguard is taking steps to minimize disruption to customers, such as working with our other vendors. “

Pioneering clients took on twitter Monday and complained about long waiting times after the bank holiday weekend. Vanguard representatives responded by promising to contact directly.

The timing of the multi-day outage comes as many investors and advisers work on year-end account changes. It’s also striking because many funds recognize annual distributions of capital gains, which can impact prices and raise questions for investors, as financial adviser IQ’s sister publication reported, Ignites.

Morningstar last month highlighted the larger-than-usual distribution of capital gains that investors with taxable accounts – especially those invested in active funds – may face due to strong market performance. These payments can impact the cost base to shareholders and influence the decisions of potential buyers about when to get started, Morningstar noted.

Vanguard’s most recent earnings estimate, released on December 9, shows its Vanguard Explorer throwing 13.75% of its NAV in capital gains, for example. The Growth & Income fund, meanwhile, is expected to distribute 12.68% of the net asset value. Vanguard’s mid-cap growth fund envisions a 25.55% payout.

This week’s website problems aren’t the company’s first.

In March, an outage prevented some customers from completing certain types of transactions, as Ignites reported. In January, the volume around the GameStop evict locked customers. In 2020, periods of high volume trading in September, August and March caused disruption.

In February, 529 target date portfolios of college savings accounts encountered a problem with rebalancing the company had to correct, and in October, investors received misinformation about money market holdings, Ignites reported. .

Chief executive officer Tim buckley in early 2021 pledged to invest $ 1 billion in improving the company’s websites and other technologies for customers.



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