Debt & Savings
Vanguard to Pay $106 Million Over Retirement Fund Violations
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Vanguard Group will pay more than $106 million to settle US Securities and Exchange Commission allegations that it made misleading statements about capital gains distributions and tax consequences to retail investors who held popular target-date retirement funds in taxable accounts.
The company announced in December 2020 it would lower the minimum initial investment for its Vanguard Institutional Target Retirement Funds. The SEC claims that to meet demand, a different Vanguard retirement fund had to sell underlying assets with gains because financial markets had rebounded from their pandemic lows.