Section 307

• Section 307 of SOX mandates that the Securities and Exchange Commission create and enforce rules for attorneys practicing in front of the SEC (meaning, attorneys who represent companies subject to SEC regulation). The provision effectively allows the SEC to hold attorneys accountable for their clients' behavior.
  
  

Reporting Requirement

• In 2003, the SEC implemented several rules under Section 307. Among other requirements, attorneys must now report evidence of securities violations to the company's chief executive officer or most senior legal officer. If that officer takes no action, attorneys must report the information to some or all of the company's board of directors, or to an independent legal committee if the company has one.
  
  

Confidentiality

• Attorneys have a general duty of client confidentiality. The SEC rules under 307, however, allow an attorney for a securities issuer to disclose confidential information to prevent the client from acting illegally, or committing a securities violation that will injure the company or the shareholders.