The New York Times reports that US lawyers will soon have to comply with new disclosure rules that the Securities & Exchange Commission (SEC) currently has under consideration. The new proposals are designed to prevent corporate fraud.
Legislation was passed earlier in the year which required the SEC to prepare draft regulations which would compel lawyers 'to report evidence of a material violation of the securities law' to a company's chief in-house lawyer and, should there be an inappropriate response, the matter would need to be drawn to the attention to the company audit committee or board.
One proposal currently on the table would also require the lawyer to make a 'noisy withdrawal' - in other words, quit after blowing the whistle in order to attract attention to possible wrongdoing.
The proposals are expected to be published imminently.