SEC Charges Advisory Firm GQG Partners With Violating Whistleblower Protection Rule
summary
GQG Partners LLC settled SEC charges for violating whistleblower protection rules by using restrictive employment and settlement agreements to impede reporting of securities law violations.
paragraph
Florida-based investment adviser GQG Partners LLC violated whistleblower protection Rule 21F-17(a) through restrictive non-disclosure and settlement agreements. The firm's misconduct involved impeding 12 job candidates and a former employee from communicating directly with the SEC. To resolve the matter, GQG agreed to a censure and a $500,000 civil penalty.
narrative
The SEC charged Florida-based GQG Partners LLC with violating whistleblower protection Rule 21F-17(a) between November 2020 and September 2023. The firm utilized non-disclosure agreements with 12 employment candidates that required notification to the firm regarding government information requests and restricted voluntary disclosures. Additionally, a settlement agreement with a former employee required the individual to withdraw prior statements that could support an SEC investigation. These provisions created significant barriers to direct communication between individuals and the Commission. Without admitting or denying the findings, GQG agreed to a censure, a cease-and-desist order, and a $500,000 civil penalty. The investigation was led by the SEC’s Asset Management Unit.
Classified non-corporate(confidence 97%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Rule 21F-17(a)
Parties
corey schusterfirms cannot impose barriersGQG Partners LLCsec investigationSecurities and Exchange Commissionsettlement agreement
Keywords
secgqgwhistleblower protectionsecuritiesviolating whistleblowerformer employeepossible securitieswhistleblowerprotectioncommissionagreementslawadvisory firmpartners violatingagreements candidates
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $500K $500,000 $100K–$1M
Entities 6
- person corey schuster
- person firms cannot impose barriers
- company GQG Partners LLC
- agency sec investigation
- agency Securities and Exchange Commission
- person settlement agreement
Triples 9
- SEC announced settled charges against GQG Partners LLC
- GQG Partners LLC entered into Agreements with Candidates for Employment
- GQG Partners LLC entered into Non-Disclosure Agreements
- GQG Partners LLC entered into Settlement Agreement
- Provisions violated Whistleblower Protection Rule
- GQG Partners LLC violated Whistleblower Protection Rule 21F-17(a)
- GQG Partners LLC agreed to pay $500,000 Civil Penalty
- Corey Schuster said Firms Cannot Impose Barriers
- Marie DeBonis, Marilyn Ampolsk, and Brian Fitzpatrick conducted SEC Investigation
PDF (from attached: pdf)
Text layers
Extracted body text (2,561c)
The Securities and Exchange Commission today announced settled charges against Florida-based GQG Partners LLC, a registered investment adviser, for entering into agreements with candidates for employment and a former employee that made it more difficult for them to report potential securities law violations to the SEC. According to the SEC’s order, from November 2020 through September 2023, GQG entered into non-disclosure agreements with 12 candidates for employment that prohibited them from disclosing confidential information about GQG, including to government agencies. While the agreements permitted the candidates to respond to requests for information from the Commission, it required notification to GQG of any such request and prohibited responding to requests arising from a candidate’s voluntary disclosure. The SEC’s order finds that GQG also entered into a settlement agreement with a former employee whose counsel had told GQG that he or she intended to report alleged securities law violations to the Commission. Specifically, the settlement agreement said that it permitted reporting possible securities law violations to government agencies, including the Commission; however, it also required the former employee to affirm that he or she had not done so; was not aware of facts that would support an investigation; and would withdraw any statements already made that might support an investigation. These provisions violated the whistleblower protection rule. “Whether through agreements or otherwise, firms cannot impose barriers to persons providing evidence about possible securities law violations to the SEC, as GQG did,” said Corey Schuster, Co-Chief of the Division of Enforcement’s Asset Management Unit. “Even agreements that contain carve-out language allowing people to voluntarily report to the SEC can be violative if restrictive language in a separate provision impedes voluntary reporting to the Commission staff.” The SEC’s order finds that GQG violated whistleblower protection Rule 21F-17(a), which prohibits any action to impede an individual from communicating directly with the SEC staff about a possible securities law violation. Without admitting or denying the SEC’s findings, GQG agreed to be censured, to cease and desist from violating the whistleblower protection rule, and to pay a $500,000 civil penalty. The SEC’s investigation was conducted by Marie DeBonis, Marilyn Ampolsk, and Brian Fitzpatrick, and supervised by Virginia Rosado Desilets, Mr. Schuster, and Andrew Dean, all of the Asset Management Unit.
OCR text (2,561c · html-text · 99% conf)
The Securities and Exchange Commission today announced settled charges against Florida-based GQG Partners LLC, a registered investment adviser, for entering into agreements with candidates for employment and a former employee that made it more difficult for them to report potential securities law violations to the SEC. According to the SEC’s order, from November 2020 through September 2023, GQG entered into non-disclosure agreements with 12 candidates for employment that prohibited them from disclosing confidential information about GQG, including to government agencies. While the agreements permitted the candidates to respond to requests for information from the Commission, it required notification to GQG of any such request and prohibited responding to requests arising from a candidate’s voluntary disclosure. The SEC’s order finds that GQG also entered into a settlement agreement with a former employee whose counsel had told GQG that he or she intended to report alleged securities law violations to the Commission. Specifically, the settlement agreement said that it permitted reporting possible securities law violations to government agencies, including the Commission; however, it also required the former employee to affirm that he or she had not done so; was not aware of facts that would support an investigation; and would withdraw any statements already made that might support an investigation. These provisions violated the whistleblower protection rule. “Whether through agreements or otherwise, firms cannot impose barriers to persons providing evidence about possible securities law violations to the SEC, as GQG did,” said Corey Schuster, Co-Chief of the Division of Enforcement’s Asset Management Unit. “Even agreements that contain carve-out language allowing people to voluntarily report to the SEC can be violative if restrictive language in a separate provision impedes voluntary reporting to the Commission staff.” The SEC’s order finds that GQG violated whistleblower protection Rule 21F-17(a), which prohibits any action to impede an individual from communicating directly with the SEC staff about a possible securities law violation. Without admitting or denying the SEC’s findings, GQG agreed to be censured, to cease and desist from violating the whistleblower protection rule, and to pay a $500,000 civil penalty. The SEC’s investigation was conducted by Marie DeBonis, Marilyn Ampolsk, and Brian Fitzpatrick, and supervised by Virginia Rosado Desilets, Mr. Schuster, and Andrew Dean, all of the Asset Management Unit.