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SEC’s Actions Against Guggenheim Securities Reassure Whistleblowers

Phillips & Cohen partner Erika Kelton praises the SEC enforcement against Guggenheim Securities for policies that could have gagged whistleblowers, saying in a Forbes.com article she wrote that the move should be reassuring to potential whistleblowers.

The US Securities and Exchange Commission’s recent fine and censure of Guggenheim Securities sent Wall Street a powerful reminder: Companies cannot prohibit or impede employees from contacting the SEC or any other regulator about potential securities law violations.

Importantly, the SEC is enforcing Rule 21-7F even when it hasn’t found evidence that the restrictive language actually stopped someone from reporting. That was the case with Guggenheim and earlier cases as well. However, it’s impossible to know how many instances there are when someone wants to report violations to the SEC but is scared off by the threat of retaliation.

Read the entire article, “SEC’s Actions Against Guggenheim Securities Reassure Whistleblowers,” on Forbes.com.

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