I just read about Vanguard's latest fine from the SEC. This really strikes at the credibility of Vanguard.
Here is an excerpt from today's Newsday. Maybe this has already been discussed in this forum; however, it may still be of interest to those who missed a previous posting of this fine.
Vanguard’s $19.5M settlement
When Vanguard Group in 2020 stepped up efforts to supplement its famously low
money-management fees by expanding its Personal Advisor Service, the company said on its website that Vanguard advisers were paid a salary, not commissions
tied to sales, so they “have no financial incentives to recommend
certain products,” and “they’ll always put your interests first.” The “no
financial incentives” claim wasn’t true, according to the SEC. Vanguard
advisers were paid more in merit-based compensation and through
promotions if they sold more. On Aug. 29, Vanguard Advisers Inc. agreed to settle the claim, paying
$19.5 million into a fund for advisory clients between August 2020
and December 2023.
Here is an excerpt from today's Newsday. Maybe this has already been discussed in this forum; however, it may still be of interest to those who missed a previous posting of this fine.
Vanguard’s $19.5M settlement
When Vanguard Group in 2020 stepped up efforts to supplement its famously low
money-management fees by expanding its Personal Advisor Service, the company said on its website that Vanguard advisers were paid a salary, not commissions
tied to sales, so they “have no financial incentives to recommend
certain products,” and “they’ll always put your interests first.” The “no
financial incentives” claim wasn’t true, according to the SEC. Vanguard
advisers were paid more in merit-based compensation and through
promotions if they sold more. On Aug. 29, Vanguard Advisers Inc. agreed to settle the claim, paying
$19.5 million into a fund for advisory clients between August 2020
and December 2023.
Statistics: Posted by Cuttlefish — Fri Sep 12, 2025 12:07 pm — Replies 0 — Views 13