The Guggenheim censored employees for banning them from contacting regulators

It’s been the Guggenheim Securities censored The U.S. Securities and Exchange Commission has banned employees from contacting regulators without permission.

The SEC said Wednesday that the investment bank’s policy – contained in an employee handbook and annual training sessions – violates the rules of whistleblowers introduced after the 2008 financial crisis.

Between 2016 and 2020, the manual stated: “Employees are also strictly prohibited from entering into contact with any regulator without the prior permission of the legal or compliance department. This prohibition applies to any matter that may be discussed with a regulator. . “. Violation of the policy threatened to take disciplinary action.

The SEC added that it did not know of any specific case in which an employee actively prevented him from communicating with regulators.

The Guggenheim has approved a language revision in its manual and has paid a $ 208,912 fine to the regulator as part of the agreement.

“We are pleased to have the problem resolved,” the bank said. “The Guggenheim has always sought to protect the rights of complainants, and we note that the SEC acknowledged in that agreement that there was no evidence that the company was obstructing news communications,” the Guggenheim said in a statement.

The order does not apply to the sister company Guggenheim Investment Investment Management, which in 2016 was under SEC investigation after a whistleblower complaint. the company has accused him of taking care of himself putting his interests before the customers. That was the case later closed without any enforcement action against the company.

Under the guidance of veteran dealer-author Alan Schwartz, a former Bear Stearns banker, Guggenheim Securities has become the most influential U.S. merger and acquisition consultant.

After the financial crisis, it attracted top bankers from large institutions that were regulating it, which allowed it to gain market share from its most fixed rivals.

Paying large allowances, The Guggenheim was able to hire bankers who had relationships with some of America’s largest companies, helping the company win advisory roles in many mega deals, including Walt Disney’s acquisition of $ 21stbn 21st Century Fox awnings and Charter’s $ 87.4bn Time Warner Cable .