Vanguard Group agrees to multimillion settlement with SEC

The renowned investment firm Vanguard Group has agreed to pay $106.4 million as part of a settlement with the US Securities and Exchange Commission (SEC). The reason for the settlement is misleading statements related to capital gains distributions and their resulting tax implications for private investors, as the agency announced on Friday. During the investigations, the SEC found that investors in certain Vanguard target funds were faced with increased tax obligations. Additionally, due to insufficient information from Vanguard, they missed out on potential growth of their investments. This is particularly problematic, as precise information about capital gains and tax consequences is crucial for investors saving for retirement, emphasized Corey Schuster, head of the Division of Enforcement's Asset Management Unit. The company's legal counsel, which has neither admitted nor denied the allegations, could not be reached for comment. The settlement concludes the SEC's investigations, which were conducted in parallel by the Attorneys General of New York and New Jersey as well as the Connecticut Department of Banking.