diff --git a/management/server/account.go b/management/server/account.go
index f46f8939faf..558c6968cdd 100644
--- a/management/server/account.go
+++ b/management/server/account.go
@@ -1814,6 +1814,7 @@ func newAccountWithId(accountID, userID, domain string) *Account {
 		Settings: &Settings{
 			PeerLoginExpirationEnabled: true,
 			PeerLoginExpiration:        DefaultPeerLoginExpiration,
+			GroupsPropagationEnabled:   true,
 		},
 	}