SEC Order: The Vanguard Group, Inc. – Misleading Statements on Tax Consequences and Disclosure Failures

The SEC found that Vanguard made misleading statements in prospectuses about potential tax consequences for investors in certain retirement funds, failing to disclose increased capital gains risks and lacking adequate policies to prevent such violations. Vanguard was ordered to pay $14.7 million in disgorgement, $3.5 million in interest, and a $13.5 million civil penalty, with a Fair Fund established for harmed investors.