Vanguard Settles SEC Claims Over Adviser Conflicts of Interest

Vanguard Advisers Inc. encouraged advisers to enroll customers in personal financial services without properly disclosing employees’ financial interest to do so, the US Securities and Exchange Commission said.

The firm agreed to pay $19.5 million to settle the SEC’s allegations without admitting or denying wrongdoing.

“Vanguard is committed to supporting everyday investors and retirement savers,” the firm said Friday in a statement. “We are pleased to have reached an agreement to put this matter behind us.”

From August 2020 through December 2023, the firm incentivized its financial advisers to enroll and retain clients in fee-based services, tying year-end performance goals ...