The alleged violations stem from a 2020 change where Vanguard lowered the minimum investment requirement for its institutional target date funds. The fine of $106.41 million will be distributed to harmed investors,

An investigation by the S.E.C. and several states found that the company had failed to notify investors of changes in the terms of some funds, leading to higher capital gains taxes.

The regulator determined that the firm failed to provide accurate details regarding the capital gains and tax consequences associated with a change in investment minimums.