The Review of Securities & Commodities Regulation
Professional Responsibility Issues for Swaps Lawyers Under Dodd-Frank
November 23, 2011
Mandated by Dodd-Frank, the CFTC’s proposed new anti-evasion and final whistleblowing rules present novel professional responsibility issues and some fine lines for lawyers. Under the anti-evasion rules, a transaction may be deemed an evasion if it lacks a legitimate business purpose or involves deception or other illegitimate activity. The new whistleblower rules will require lawyers to assist clients in developing plans to encourage whistleblowers to report violations internally and to protect them from retaliation. The author discusses the rules and their potential for interference with the lawyer’s traditional role as trusted confidential adviser.