Regulatory Alerts2025-03-21
Commonwealth of Pennsylvania Administrative Consent Order Regarding Vanguard Marketing Corporation and The Vanguard Group, Inc.
The Pennsylvania Department of Banking and Securities issued an Administrative Consent Order against Vanguard Marketing Corporation and The Vanguard Group, Inc. for failing to maintain adequate supervisory systems and making materially misleading omissions regarding capital gains tax risks. The respondents agreed to resolve allegations that they lowered investment minimums for Institutional Target Retirement Funds without disclosing the resulting surge in capital gains distributions to shareholders of Investor Target Retirement Funds. As part of the settlement, Vanguard paid a total of $92.91 million in remediation and a $1 million administrative penalty to resolve the state investigation.
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