FRANKFURT (dpa-AFX) - The Securities and Exchange Commission Wednesday said that Deutsche Bank has agreed to pay a $9.5 million penalty for failing to properly safeguard non-public information generated by its research analysts.
Deutsche Bank also published an improper research report and failed to properly preserve and provide certain electronic records sought by the SEC during its investigation, the agency said.
According to the SEC's order, Deutsche Bank encouraged its equity research analysts to communicate frequently with customers as well as its own sales and trading personnel, but lacked adequate policies and procedures to prevent analysts from disclosing yet-to-be-published views and analyses, changes in estimates, and short-term trade recommendations during morning calls, trading day squawks, idea dinners, and non-deal road shows.
'Information generated by research analysts such as ratings, views, estimates, and trading recommendations can move markets,' said Antonia Chion, Associate Director of the SEC Division of Enforcement. 'Broker-dealers must maintain and enforce policies and procedures that are reasonably designed in light of the nature of their business to prevent the misuse of such information.'
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