Guggenheim Partners Investment Management, Llc

Allegations: THE SEC FOUND THAT GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC ("GPIM") VIOLATED SECTIONS 204, 204A, 206(2), AND 206(4) OF THE INVESTMENT ADVISERS ACT OF 1940 AND RULES 204-2, 204A-1, AND 206(4)-7 PROMULGATED THEREUNDER IN CONNECTION WITH (1) A NEGLIGENT FAILURE TO DISCLOSE, IN TWO TRANSACTIONS DATING BACK TO 2010, A POTENTIAL CONFLICT OF INTEREST RELATED TO A SENIOR EXECUTIVE'S RECEIPT OF A LOAN FROM A CLIENT; (2) ITS INADVERTENT BILLING OF MANAGEMENT FEES ON NON-MANAGED ASSETS TO ONE CLIENT; (3) ITS COMPLIANCE POLICIES AND PROCEDURES AND CODE OF ETHICS REGARDING CONFLICTS OF INTEREST, GIFTS AND ENTERTAINMENT, AND TRADE ERRORS; AND (4) ITS BOOKS AND RECORDS. GPIM NEITHER ADMITTED NOR DENIED THE FINDINGS IN THE SEC ORDER. Status: Final Sanction Detail: GPIM PAID THE $20 MILLION CIVIL MONETARY PENALTY ON AUGUST 13, 2015. Summary: ON AUGUST 10, 2015, THE SEC ISSUED A SETTLED ADMINISTRATIVE ORDER FINDING VIOLATIONS DESCRIBED ABOVE UNDER ITEM 7 OF THIS DRP. GPIM PAID THE $20 MILLION CIVIL MONETARY PENALTY ON AUGUST 13, 2015. ON SEPTEMBER 9, 2015 GPIM ENGAGED AN INDEPENDENT COMPLIANCE CONSULTANT TO REVIEW ITS COMPLIANCE POLICIES AND PROCEDURES WITH RESPECT TO: (1) GPIM PERSONNEL WHO ARE INVOLVED IN THE BUSINESS TRANSACTIONS OF GUGGENHEIM PARTNERS, LLC (GPIM'S CORPORATE PARENT) AND ITS AFFILIATES, AND CONSIDERATION OF THAT INVOLVEMENT TO GPIM'S ADVISORY OBLIGATIONS, INCLUDING WHETHER SUCH POLICIES AND PROCEDURES EFFECTIVELY DETAIL GUGGENHEIM PARTNERS' ROLE; (2) CONFLICTS OF INTERESTS; (3) TRADE ERRORS; AND (4) GIFTS AND ENTERTAINMENT. GPIM NEITHER ADMITTED NOR DENIED THE FINDINGS IN THE ORDER. THE INDEPENDENT CONSULTANT COMPLETED ITS REVIEW IN DECEMBER 2015. AS PROVIDED IN THE ORDER, GPIM CERTIFIEDTO THE SEC THAT IT HAS COMPLIED WITH THE ACTION ITEMS OF THE ORDER AND INDEPENDENT CONSULTANT RECOMMENDATIONS ON MARCH 7, 2015

Allegations: ON FEBRUARY 9, 2024, THE SEC ANNOUNCED AN ENFORCEMENT ACTION AGAINST GUGGENHEIM SECURITIES, LLC ("GS") AND GUGGENHEIM PARTNERS INVESTMENT MANAGEMENT, LLC ("GPIM"), FINDING VIOLATIONS OF SEC BOOKS AND RECORDS AND RELATED SUPERVISORY RULES. WHILE GPIM HAD IN PLACE POLICIES AND PROCEDURES REQUIRING THE PRESERVATION OF ELECTRONIC COMMUNICATIONS, THE SEC FOUND, AND GPIM ADMITTED, THAT EMPLOYEES HAD UTILIZED PERSONAL MOBILE DEVICES TO SEND AND RECEIVE BUSINESS-RELATED TEXT MESSAGES THAT WERE NOT CAPTURED AND PRESERVED BY GPIM. AS PART OF THE SEC SETTLEMENT, GPIM AND GS AGREED TO (1) A CIVIL MONETARY PENALTY AND (2) CERTAIN UNDERTAKINGS, INCLUDING THE RETENTION OF AN INDEPENDENT COMPLIANCE CONSULTANT. Status: Final Sanction Detail: JOINTLY WITH GS, GPIM PAID THE CIVIL MONETARY PENALTY OF $15,000,000 ON FEBRUARY 23, 2024. Summary: ON FEBRUARY 9, 2024, THE SEC ANNOUNCED THE SETTLED ADMINISTRATIVE ORDER ENTERED INTO BY GS AND GPIM, WHICH IS SIMILAR IN FORM AND CONTENT TO THOSE PREVIOUSLY ENTERED IN RELATION TO NUMEROUS OTHER BROKER-DEALERS AND INVESTMENT ADVISERS AS PART OF THE SEC'S SWEEP OF FIRMS' USE OF OFF-CHANNEL COMMUNICATIONS. THE SETTLEMENT REQUIRES GPIM AND GS, JOINTLY AND SEVERALLY, TO PAY A CIVIL MONETARY PENALTY OF $15,000,000 AND TO RETAIN AN INDEPENDENT COMPLIANCE CONSULTANT. IN ISSUING THE ORDER, THE SEC RECOGNIZED GS'S AND GPIM'S COOPERATION WITH THE SEC STAFF AND THE REMEDIAL EFFORTS THEY TOOK PRIOR TO AND AFTER BEING APPROACHED BY SEC STAFF, INCLUDING ENHANCING ITS POLICIES AND PROCEDURES, IMPLEMENTING INCREASED TRAINING CONCERNING THE USE OF APPROVED COMMUNICATIONS METHODS, AND BEGINNING TO IMPLEMENT SIGNIFICANT CHANGES TO THE TECHNOLOGY AVAILABLE TO EMPLOYEES. ON FEBRUARY 12, 2024, GPIM ENGAGED THE INDEPENDENT COMPLIANCE CONSULTANT, WHO HAS BEGUN ITS COMPREHENSIVE COMPLIANCE REVIEW RELATING TO THE USE OF APPROVED COMMUNICATIONS METHODS. JOINTLY WITH GS, GPIM PAID THE CIVIL MONETARY PENALTY ON FEBRUARY 23, 2024.