Poster
08-07-2003, 04:28 PM
The SEC has issued rules requiring that when attorneys witness corporate wrong doing in terms of financial fraud at publicly held companies, that they must report their findings to regulators.
The problem is that this federal requirement is at odds with a number of state requirements. The SEC has issued a proposed rule with a possible out but the comment period has closed.
"But many lawyers who take up the federal government on its invitation could find themselves in legal hot water at the state level -- client-confidentiality rules in the District and eight states prohibit lawyers from divulging client confidences, except to prevent death or bodily harm."
Read article
http://accounting.smartpros.com/x39924.xml
The problem is that this federal requirement is at odds with a number of state requirements. The SEC has issued a proposed rule with a possible out but the comment period has closed.
"But many lawyers who take up the federal government on its invitation could find themselves in legal hot water at the state level -- client-confidentiality rules in the District and eight states prohibit lawyers from divulging client confidences, except to prevent death or bodily harm."
Read article
http://accounting.smartpros.com/x39924.xml