FEDERATED HERMES INC
FHI
Financials
1
exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Federated Hermes was charged in the SEC's industry-wide enforcement sweep targeting off-channel communications recordkeeping violations. ViolationTracker documents $100 million in total penalties for Federated Hermes since 2000. The SEC's January 2025 enforcement action (Press Release 2025-6) charged twelve firms for failures to maintain and preserve electronic communications, with combined penalties of $63.1 million. Personnel at these firms routinely used unapproved platforms such as WhatsApp and personal text messages for business communications legally required to be preserved for insider trading and market manipulation surveillance. Separately, FINRA imposed a $150,000 fine on SEI Investments Distribution (a distinct entity) for reporting deficiencies, and the FCA issued a final notice to SEI Investments Europe Ltd for compliance failures, demonstrating a broader pattern of regulatory non-compliance in the asset management industry.
Research Sources
3 organizations
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.