M E M O R A N D U M

TO: File No. S7-45-02
FROM: Commissioner Cynthia A. Glassman
DATE: January 21, 2003
RE:Meeting held on January 17, 2003, with Securities Industry Association

Stuart Kaswell, George Kramer and representatives of certain Securities Industry Association ("SIA") member firms and counsel met with Commissioner Cynthia A. Glassman on January 17, 2003, to discuss the Commission's proposed professional standards for lawyers.

The SIA representatives stated that they were not opposed to the proposed "up the ladder" reporting requirements, subject to modifications to the categories of attorneys covered by the rule and the definition of "in the representation of an issuer." They indicated that such reporting was already generally occurring.

They were strongly opposed, however, to the "noisy withdrawal" provisions for the reasons summarized in the SIA's comment letters on the rule proposal. They noted that the "noisy withdrawal" portion of the proposed rules went beyond the mandate of Sarbanes-Oxley and suggested that the Commission defer consideration of the "noisy withdrawal" pending further comment and analysis.