News, Vision & Voice for the Advisory Community


Vanguard warns its phone-reliant investors of 'termination' -- without warning or explanation -- under new contract, effective July 1

Investors who 'excessively rely' on telephone calls may first face longer hold times and pay fees for overburdening call centers after the $9-trillion manager amended its brokerage compact with new terms

Author Oisin Breen June 19, 2024 at 1:53 PM
no description available
Vanguard's Buckley is exiting as CEO right as draconian new anti-phone policies take effect.
Brooke Southall and Keith Girard contributed to the editing of this article.






June 20, 2024 — 10:51 AM
I am transferring 5 accounts away from Vanguard. They are no longer a customer focused leader in my mind.
sumanlal kaneria

sumanlal kaneria

June 20, 2024 — 11:53 AM
Very accurate, timely and nice description of state of affairs at Vanguard. Vanguard does still have some excellent funds and ETFs but I would hold them in other real brokers accounts rather than in Vanguard fake me too brokerage. Vanguard culture has become condenscending to customers.
Louis Harvey

Louis Harvey

June 20, 2024 — 4:36 PM
While large numbers of investors and advisors continue to rely on phone service, it is possible to identify those who are excessive users. However, before abandoning these users it is essential for a responsible institution to be certain that no emergency exists! Simply because someone called several times last month does not disqualify them from prudent treatment. Before shutting the door on an investor or an advisor, the institution should determine if an urgent situation exists and provide a direct path to solutions. Unfortunately, most IVRs handle emergencies very poorly with difficult access to someone who can help. Any cutbacks in phone service should be preceded by emergency access procedure.


June 20, 2024 — 8:07 PM
Vanguard is not "firing grandma." Having worked for (insert discount 9.99 broker name) on the phone lines- there are a lot of 'clients' who will call for no reason other than to talk to a human knowing they can. They don't place a trade, they don't have a service need, they ask for one quote, then will go off on tangents just because they are lonely and need interactions. If one phone rep dumps the call quickly, they just call in and look for more interaction with the next person to discuss their gold stocks, the white house, etc. They are never even break even relationships, let alone profitable ones even if these are "owners". Other bd's have fired clients for the same reason, or in my previous spots case- they re-routed the phone number to the longest queues hoping they would call in less frequently.

Related Moves

May 15, 2024 at 12:48 AM

During CEO Tim Buckley's waning months, Vanguard is imposing fees that may affect its older investors, while hand-off to Ascensus of certain IRA and 401(k) products also comes with some sticker shock

The Malvern, Pa., giant transferred SEP IRA and 401(k) assets to its recordkeeper, which immediately imposed new fees, while Vanguard's new pricing schedule includes a commission to phone in Vanguard fund sales or purchases

May 2, 2024 at 1:27 AM

Tim Buckley sends shockwaves by retiring as Vanguard CEO after adding $750 billion per year during his stay in the executive suite

The 54 year-old lasted just over six years in the job, delivered on targets, but he also made head-scratching decisions and never solved its technology woes

March 1, 2024 at 3:35 AM

Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance

Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.

March 25, 2023 at 1:32 AM

See more related moves

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings

Common Tags

Recent Articles

Popular Writers

RIABiz logo


About Us




RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.