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 claims were echoed in two of Securities and Exchange Commission filings based on the service.

Vanguard has since raised more than $300 billion for the advisory business, collecting up to 0.3% of each customer’s assets as a yearly fee.

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. The SEC prepared a

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