The only way to get client/lawyer privilege is if you safety dept were actually your lawyers!
On SMS - the regulator still needs to agree the operator is fit to operate. Some of the smarter regulators have realised that they need to change. CASA now say they don't want former pilots and mechanics as such in their ranks, they want former managers who can recognise what a safe operation looks like.
alf507h Could you expand on your comment: In addition the regulators contribute to the problem as most of the safety data appears to be used for statistical purposes and not for new safety initiatives.