SEC delays whistleblowing measures
The Securities and Exchange Commission has postponed measures that would force lawyers to alert the regulator if they thought one of their clients was breaking the law.
Link: Sarbanes-Oxley report
The commission voted unanimously to delay the implementation of such measures, which were required by the Sarbanes-Oxley Act, with a view to softening them.
It has agreed to an extension of 60 days to allow further discussion on the issue and consider alternatives to the proposals.
Under the proposal, an attorney would be required to alert the SEC if they have stopped representing a client who they think is engaged in illegal activity.
The move will bring temporary relief to the legal profession, which has been unanimously against the measure.