It was the Guggenheim Securities Blame by the US Securities and Exchange Commission to prevent employees from contacting regulators without approval.
The Securities and Exchange Commission said Wednesday that the investment bank’s policy — which is included in a handbook for employees and in annual trainings — was a violation of whistleblower rules introduced in the wake of the 2008 financial crisis.
Between 2016 and 2020, the manual states: “Employees are strictly prohibited from initiating contact with any regulator without the prior approval of the Legal Department or the Compliance Department. This prohibition applies to any subject that may be discussed with a regulator….” Download Policy Violation Threatening Disciplinary Action.
The SEC added that it was not aware of any specific case in which an employee was prevented from communicating with regulators.
Guggenheim agreed to review the language in its compliance manual and pay a fine of $208,912, as part of a settlement with the regulator.
“We are happy to resolve this issue,” the bank said. “The Guggenheim has long sought to protect the rights of whistleblowers, and we note that the SEC has acknowledged in this settlement that there is no evidence, if any, that the company obstructed the whistleblower’s communications,” the Guggenheim said in a statement.
It’s not about sister company Guggenheim Partners Investment Management, which came under an SEC investigation after a whistleblower complaint in 2016. The company was accused of self-dealing By presenting their interests to clients. was the case later closed Without any enforcement action against the company.
Under the leadership of veteran dealmaker Alan Schwartz, a former banker at Bear Stearns, Guggenheim Securities has become one of the most influential M&A advisors in the United States.
In the aftermath of the financial crisis, it attracted many top bankers from larger institutions that became more regulated, a move that allowed them to gain market share from more established competitors.
by payment Big rewards, the Guggenheim was able to hire bankers who had built relationships with some of America’s largest companies, helping the company win advisory roles in several mega deals, including Walt Disney’s $89 billion acquisition of 21st Century Fox’s marquee assets and Time’s charter acquisition. $87.4 billion Warner Cable.