Guggenheim Securities has condemn The US Securities and Exchange Commission prohibits employees from contacting regulatory agencies without approval.
The US Securities and Exchange Commission said on Wednesday that the investment bank’s policies — including in its employee handbook and annual training courses — violated the reporting rules introduced after the 2008 financial crisis.
During the period from 2016 to 2020, the manual stated: “Without the prior approval of the legal or compliance department, employees are not allowed to actively contact any regulatory agency. The prohibition applies to any topic that may be discussed with the regulatory agency.. .” Violation The policy will be subject to disciplinary action.
The US Securities and Exchange Commission added that it is not aware of any specific cases in which employees were actively prevented from communicating with regulators.
As part of the settlement with the regulator, Guggenheim has agreed to modify the language in its compliance manual and paid a fine of US$208,912.
“We are very happy to resolve this matter,” the bank said. Guggenheim said in a statement: “Guggenheim has always sought to protect the rights of whistleblowers. We note that the SEC admitted in the settlement that there is no evidence that the company hindered whistleblowers’ communication, if any. .
The order has nothing to do with sister company Guggenheim Partners Investment Management, which was investigated by the U.S. Securities and Exchange Commission after being complained by whistleblowers in 2016 Accuse the company of self-dealing By putting its interests above the customers.The case is Closed later No enforcement actions have been taken against the company.
Under the leadership of veteran deal maker Alan Schwartz (former Bear Stearns banker), Guggenheim Securities has become one of the most influential M&A advisors in the United States.
After the financial crisis, it attracted several top bankers from large institutions with increasingly strict regulations, a move that allowed it to win market share from more mature competitors.
Pay by Huge bonus, Guggenheim was able to hire bankers who have established relationships with some of the largest companies in the United States to help the company win consulting roles in several large transactions, including Walt Disney’s US$89 billion acquisition of 21st Century Fox’s major assets and Chartre’s Purchased Time Warner Cable for US$87.4 billion.