The firm was accused of restricting the ability of potential hires to report wrongdoing.

SEP 27, 2024

A registered investment advisor firm headquartered in Florida is to pay a $500,000 civil penalty to settle charges from the Securities and Exchange Commission relating to whistleblowing.

GQG Partners LLC was charged by the SEC for entering into agreements with employment candidates and a former employee that would make it harder for them to report potential violations of securities law to the agency.

The SEC order states that 12 potential hires signed non-disclosure agreements with GQG between November 2020 and September 2023 which prohibited them from disclosing any confidential information about the firm, even to government agencies. It did not preclude the sharing of requested information when inquiries were initiated by the SEC but stated that any such request was to be reported to GQG.

Further, the SEC order found that a former GQG employee had entered into a settlement agreement with the firm. The individual’s counsel had informed the firm of the former employee’s intention to report securities law violations to the SEC and other government agencies.

While the settlement did not prohibit the reporting, it 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...

Read Full Story: https://news.google.com/rss/articles/CBMi0AFBVV95cUxNVXhJWHZ6cE43TW5jVDhYT2U5...