Compliance Corner - SEC, Goldman Sachs

Editorial Staff 24 October 2018

Compliance Corner - SEC, Goldman Sachs

The latest in compliance issues in wealth management across North America.

SEC, Goldman Sachs
The Securities and Exchange Commission has opened an inquiry into the departure of a Goldman Sachs senior investment banker and partner, according to the New York Times.

The partner, James Katzman, raised concerns about what he viewed as unethical conduct at the bank.

According to reports, he called Goldman’s whistleblower hotline in 2014 to complain about a number of practices inside the bank. David M Solomon, who is now Goldman’s chief executive, urged Katzman to move past his complaints, and he left the firm in 2015.

Among the grievances that Katzman voiced to Goldman officials were that his colleagues had sought to obtain confidential client information and that the bank inappropriately tried to hire a customer’s child.

The precise focus of the SEC’s inquiry is not clear. The newswire said that SEC declined to comment.

The firm did not want to comment on the SEC investigation - but it did say: “The legal department conducted an exhaustive investigation of the matters Mr. Katzman raised in accordance with our whistle-blower policy."

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes