Smith, Gambrell & Russell, LLP worked quickly today to inform their corporate clients about the Securities and Exchange Commission-issued report addressing the relationship of cooperation to agency enforcement decisions, and stressing the importance of an effective functioning corporate governance and compliance program in evaluating cooperation.

The SEC made the statement under a provision of the federal securities laws used to address subjects which, in its judgment, involve substantial issues of public concern, widespread investor impact or other matters of significance related to the federal securities laws. The language of the statement, read in connection with the federal sentencing guidelines and a memorandum issued by the Department of Justice concerning prosecuting corporations, reflected the importance to public and private companies of effective, active and current internal controls and corporate compliance programs in the eyes of federal regulators and prosecutors.