On August 10, 2015, the SEC settled enforcement proceedings brought against Guggenheim Partners Investment Management, LLC (“GPIM”), an investment adviser primarily to institutional clients, high net worth individuals and private funds, based on a breach of fiduciary duty and violations of the Advisers Act. The SEC order stated that that the SEC determined that GPIM breached its fiduciary duty by not disclosing that a GPIM senior executive received a $50 million loan from a client that allowed the executive to participate personally in a deal led by GPIM’s corporate parent. As a result of the loan, the SEC found that GPIM had a potential conflict of interest whereby GPIM might place the lending client’s interests over the interests of other clients. The SEC noted that GPIM did not disclose the loan when GPIM placed certain of its other clients in two transactions on different terms from the client who made the loan. The allegations included a number of additional violations of provisions of the Advisers Act, including the adviser’s failure to enforce its code of ethics with respect to recording the loan. In settlement of these alleged violations, GPIM agreed to pay a civil monetary penalty of $20 million.