Compliance With SEC Subpoena Would Lead To Severe China Sanctions, Deloitte Says

Deloitte Touche Tohmatsu CPA Ltd. April 11 told the U.S. District Court for the District of Columbia that it could face the “severest of sanctions” if it produced workpapers sought by the Securities and Exchange Commission over an investigation of a People’s Republic of China-based issuer (SEC v. Deloitte Touche Tohmatsu CPA Ltd.).

In a court filing, DTTC—the Shanghai unit of Deloitte Touche Tohmatsu—said that the China Securities Regulatory Commission, the PRC’s securities regulator, has barred it from turning over documents requested by the SEC.

If DTTC were to produce the workpapers, “China regulators would be authorized to ...