Whistleblowing in a Foreign Key: The Consistency of Ethics Regulation Under Sarbanes-Oxley with the WTO Gats Provisions

31 Pages Posted: 8 Sep 2004

See all articles by Stewart M. Young

Stewart M. Young

United States Attorney's Office - District of Utah

Abstract

This Article discusses the consistency of the legal regime established by the Sarbanes-Oxley Act, and the ethical regulations proposed by the SEC, in relation to the legal services portion of the World Trade Organization's (WTO) General Agreement on Trades in Services (GATS). It discusses the GATS and its effect on the legal services market in general. It then examines how the ethics commitments in the United States Schedule of Commitments to GATS are treated. It examines the new ethical responsibility requirements imposed by the Sarbanes-Oxley Act and the subsequent proposals by the SEC. It concludes by demonstrating that the ethical requirements imposed by the Sarbanes-Oxley Act and the SEC are not consistent with the United States' obligations under GATS regarding legal services. This Article also discusses possible approaches to reconciling the proposed rules with GATS and action that might be taken by WTO member countries, including under the dispute resolution provisions of the WTO agreements. The ultimate conclusion of this Article is that the SEC-proposed standards as applied to nondomestic law firms are potentially irreconcilable with GATS, and likely to create friction between the United States and a number of our trading partners. The most important purpose of this Article is to analyze the inconsistency of the Sarbanes-Oxley Act and the proposed SEC rules with GATS. Second, this Article can be read as a case study for the domestic imposition of ethical standards on the trade in services and legal services field in general. Third, this Article will potentially add fuel to the fire for implementing international ethical standards in certain global service industries, including the legal services field in particular.

Keywords: Sarbanes-Oxley, SEC, World Trade Organization, WTO, General Agreement on Trade in Services, GATS, ethics regulation

Suggested Citation

Young, Stewart M., Whistleblowing in a Foreign Key: The Consistency of Ethics Regulation Under Sarbanes-Oxley with the WTO Gats Provisions. Denver Journal of International Law and Policy, Vol. 32, No. 55, 2004. Available at SSRN: https://ssrn.com/abstract=586821

Stewart M. Young (Contact Author)

United States Attorney's Office - District of Utah ( email )

United States
801-325-3213 (Phone)

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