A major SEC fine against Vanguard reveals serious issues with target date retirement funds. The $106 million penalty highlights how fund changes can trigger unexpected tax consequences for investors.

Asset management giant Vanguard has been fined more than $100 million to settle charges related to disclosures around target date investment funds, the Securities and Exchange Commission ...

The SEC’s order finds that Vanguard’s disclosures failed to warn investors about tax risks tied to fund redemptions.

Vanguard was accused of alleged misleading statements to retail investors in targeted retirement funds. Vanguard Group has been fined $106 million for alleged misleading statements to retail ...

The fine of $106.41 million will be distributed to harmed investors, the SEC said. Vanguard agreed to the fine without admitting or denying the SEC’s findings. Vanguard is one of the world’s ...

The SEC order found that the change spurred redemptions ... similar to another recent Vanguard legal run-in. In 2023, Vanguard was fined $800,000 by the Financial Industry Regulatory Authority ...