SEC Can Use State Rules to Discipline Lawyer

The Securities and Exchange Commission has authority to suspend or end an attorney’s practice before the agency based upon its own findings that the lawyer has violated state discipline rules in his securities practice, the U.S. Court of Appeals for the District of Columbia Circuit held Dec. 16. The agency declared 30 years ago that it has this power, but typically reserves action against a securities lawyer until criminal or state disciplinary proceedings have taken place. The fact that the SEC rarely exercises primary disciplinary authority over attorneys does not mean that it cannot do so, the court said. Altman v. Securities and Exchange Commission, D.C. Cir., 11-1067