Vanguard To Pay $106.4 Million To Settle Securities And Exchange Commission Charges
Vanguard To Pay $106.4 Million To Settle Securities And Exchange Commission Charges
These relate to capital gains distribution and tax consequences for retail investors
The Vanguard Group has agreed to pay $106.4 million to settle US Securities and Exchange Commission (SEC) charges over misleading statements.
The regulator observed that retail investors in certain target retirement funds faced higher tax liabilities. They were deprived of potential investment growth after the company failed to make disclosures.
Corey Schuster, the Chief of the Division of Enforcement's Asset Management Unit, stated, "Materially accurate information about capital gains and tax implications is critical to investors saving for their retirement.”
The settlement resolves the SEC's probe, with parallel investigations by the New York and New Jersey Attorneys General and Connecticut’s Department of Banking (DoB).
