Professional Relationships: How Close Is Too Close?

EY recently made headlines when they came under scrutiny from the US Securities Exchange Commission (SEC) for allegedly breaching auditor independence rules, which require a degree of separation between auditors and the companies they audit. Gregory Bednar, a partner at EY, had, according to the SEC, sent hundreds of personal messages to the CFO of its client and they had travelled together with family members for no valid business purpose. Significant fines resulted. These headlines raise an interesting question as to some of the legal, regulatory and employment law issues that can arise when professional relationships with clients or colleagues become personal.

The client relationship