Vanguard $106M Settlement for Tax Disclosure Failures

Thu, 16 Apr 2026 22:05:10 +0000
Securities

The Florida Office of Financial Regulation, as part of a multistate task force and the SEC, announced a $106 million settlement with Vanguard Marketing Corporation and The Vanguard Group for failing to disclose potential tax consequences to investors following a 2020 change in investment minimums for target date retirement funds. The investigation found that Vanguard lowered minimums for Institutional Target Retirement Funds, causing mass redemptions and asset sales that triggered capital gains taxes for hundreds of thousands of retail investors. Florida has an estimated 10,000 investors eligible for compensation through the SEC Fair Fund program.