State Securities Regulators Reach Settlement with Vanguard

Posted by
1 min read
January 18, 2025

TRENTON, NJ – The Office of the Attorney General, Division of Consumer Affairs, and Bureau of Securities have announced that New Jersey is part of a $106 million settlement with Vanguard Marketing Corporation and The Vanguard Group, Inc. This settlement involves Vanguard’s failure to supervise registered persons and disclose tax consequences after changes in investment minimums for target date retirement funds.

The settlement follows a three-year investigation by a multistate task force under the North American Securities Administrators Association (NASAA), co-led by New Jersey, Connecticut, and New York. The investigation ran parallel to a similar inquiry by the U.S. Securities and Exchange Commission (SEC).

Vanguard initially offered Institutional and Investor Target Retirement Funds with differing investment minimums. In December 2020, the minimum for Institutional TRFs dropped from $100 million to $5 million, leading many investors to redeem Investor TRF shares for Institutional TRF shares. This shift triggered capital gains taxes for hundreds of thousands of investors in the Investor TRFs, which Vanguard did not disclose.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

Stilton's journalism follows established newsroom standards emphasizing accuracy, verification, fairness, and accountability. Every effort is made to verify information through official records and multiple reliable sources before publication. His reporting is intended to provide readers with timely, well-documented information that helps them understand the issues affecting their communities, while maintaining editorial independence from political parties, government agencies, advocacy organizations, and commercial interests.

Readers can submit story tips, corrections, public records, or media inquiries through the official Shore News Network website or its verified social media channels. Shore News Network welcomes corrections and updates when new information becomes available as part of its ongoing commitment to accurate and transparent journalism.

Facebook

Don't Miss