Attorney Liability Under SEC Rule 2(E): A New Standard?

Discusses the SEC’s increasing reliance upon administrative procedures to achieve its objective under new rule 2E. This article concerns the SEC's use of Rule 2(e) as a disciplinary tool against attorneys. It will briefly review the origin of Rule 2(e) and its earlier use by the SEC; examine, in greater detail, the problems, criticisms, and comments regarding the current use of Rule 2(e); discuss the effect of the current use of the rule on the securities bar; and finally, attempt to predict and suggest possibilities for the future use of Rule 2(e). The author mentions the implications of using administration procedures and even suggests that the SEC use self-restraints when applying Rule 2 (e).