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SEC chairman scolds corporate lawyers for helping clients evade law

[JURIST] US Securities and Exchange Commission [official website] Chairman William Donaldson [official profile] said Friday that corporate lawyers should devote more time to helping clients obey the law, rather than evading it. Speaking to a gathering of securities lawyers [PLI conference information], Donaldson called on lawyers to deliver common-sense advice to their clients rather than engage "in rhetorical somersaults to justify the activities the client want[s] to pursue." Donaldson also indicated that the SEC is continuing to work to make auditors more independent of their clients and said "We will also continue to see enforcement action in this area where it is appropriate to preserve these important independence principles and protect investors." Read Donaldson's speech [SEC text]. Reuters has more.

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