The violations stem from a 2020 change where Vanguard lowered the minimum investment requirement for its institutional target date funds.

Vanguard Group will pay more than $106 million to settle US Securities and Exchange Commission allegations that it made misleading statements about capital gains distributions and tax consequences to retail investors who held popular target-date retirement funds in taxable accounts.

The SEC said a lack of notifications by Vanguard drove higher capital gains tax bills for many retail investors.