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Vanguard Settles SEC Charges for $106.4 Million

1/18/2025

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Summary

Story summary

Vanguard Group will pay $106.4 million to settle SEC charges over undisclosed tax implications of target-date funds.
A 2020 policy change reduced minimum investments for institutional funds, causing redemptions and significant capital gains taxes for retail investors.
The settlement comprises $92.9 million in restitution and a $13.5 million civil fine, with no admission of wrongdoing.
An investigation involving 45 states and territories underscores the need for accurate investor disclosures.

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Story summary

Vanguard Group will pay $106.4 million to settle SEC charges over undisclosed tax implications of target-date funds.
A 2020 policy change reduced minimum investments for institutional funds, causing redemptions and significant capital gains taxes for retail investors.
The settlement comprises $92.9 million in restitution and a $13.5 million civil fine, with no admission of wrongdoing.
An investigation involving 45 states and territories underscores the need for accurate investor disclosures.