Regulators Call Out Misleading Practices
The SEC criticized Vanguard for failing to adopt proper policies to ensure accurate client disclosures. By advertising its PAS advisers as purely salaried and free from commission-driven motives, regulators said, Vanguard lulled investors into believing they were shielded from conflicts that actually shaped adviser recommendations.
“Vanguard’s portrayal of advisers as conflict-free was simply inaccurate,” the SEC order stated.
Legal Teams and Next Steps
Vanguard is represented in the matter by Andrew J. Ceresney and Julie M. Riewe of Debevoise & Plimpton LLP. Counsel for the SEC was not immediately available.
The SEC declined to comment Friday, and Vanguard’s attorneys did not immediately respond to inquiries.
With this latest $19.5 million settlement, Vanguard’s reputation as a trusted low-cost giant in asset management faces another regulatory stain—proof that even titans of finance can falter when disclosure obligations collide with business incentives.
