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FinTech 2018


Speaker(s): Allen Brandt, Alma M. Angotti, Andras P. Teleki, Barbara A. Stettner, Bjorn J. Hall, Brian S. Trackman, Cathy Yoon, Daniel Alter, Daphna A. Waxman, Deborah Connor, Derek Newman, Dror Futter, Jeffrey S Davis, Jennifer G. Riegel, Jeremy Senderowicz, K. Susan Grafton, Lilya Tessler, Paul Stevens, Rochelle G Kauffman Plesset, Susan I Gault-Brown
Recorded on: Aug. 13, 2018
PLI Program #: 220360

Susan Gault-Brown is a partner in K&L Gates’ Washington, D.C. office and a member of the Investment Management practice. She advises participants in the financial services industry, including commodity trading advisors, commodity pool operators, investment advisers, private funds, and registered investment companies on regulatory, transactional and counseling matters involving the securities and commodities laws. Ms. Gault-Brown regularly works with commodity trading advisors and commodity pool operators with respect to registration, disclosure, and compliance issues. Ms. Gault-Brown also regularly counsels registered investment companies about issues raised by investments in derivatives under the Investment Company Act. Ms. Gault-Brown joined the firm after three years at the Securities and Exchange Commission where she was a senior counsel in the Division of Investment Management's Office of Chief Counsel. At the SEC, among other matters, Ms. Gault-Brown focused on the regulatory treatment under the federal securities laws and commodities laws of registered funds and registered advisers that used derivatives.


Alma Angotti is a Managing Director and Co-Head of the Global Investigations & Compliance practice. With over 25 years of regulatory practice, Ms. Angotti has held senior enforcement positions at the SEC, Treasury’s Financial Crimes Enforcement Network (FinCEN) and FINRA (Financial Industry Regulatory Authority). In these positions, she was responsible for conducting investigations involving securities fraud, insider trading, financial fraud, anti-money laundering (“AML”) and counter terrorist financing, market manipulation, investor and market protection, and other regulatory violations.  At FinCEN and FINRA, she designed and lead the AML enforcement programs.  She regularly worked with criminal prosecutors in a variety of jurisdictions and the U.S. Department of Justice to investigate and bring actions jointly.

Ms. Angotti has counselled her clients, large global financial institutions, multinational companies, smaller financial institutions, broker-dealers and Fintech companies, in a variety of projects, including gap analyses, compliance program reviews, risk assessments, remediation efforts, investigations and transaction reviews. Recently, she held interim senior compliance leadership positions at several global and regional financial institutions providing day-to-day management of their compliance programs and assisting them with implementing enhancements, often in the context of a regulatory or criminal enforcement action. 

She has trained and advised the financial services industry as well as other regulators and government officials worldwide on AML, sanctions, and combating the financing of terrorism (CFT) and other regulatory compliance issues.


András Teleki is the managing member of the Teleki AML and Cybersecurity Law Firm based in Washington, DC.  He also serves as the Chief Legal Officer and Head of Compliance for M3Sixty Administration and oversees internal and external firm legal and compliance matters.  András Teleki received his Juris Doctorate from Tulane Law School in 1998 and is admitted to practice in New York and the District of Columbia.   He is a frequent speaker on topics impacting the investment management industry. 

Prior to founding the Teleki AML and Cybersecurity Law Firm and joining M3Sixty, Mr. Teleki was a partner at the law firm of K&L Gates where he was a member of the Investment Management group from 2001 to 2015.  His practice focused on regulatory and compliance issues facing registered investment companies, including mutual funds and closed-end funds, broker-dealers, investment advisers, unregistered funds, variable insurance product issuers and distributors, and related service providers. He also advised insurance companies on variable insurance and other registered products and financial institutions on anti-money laundering, OFAC, cybersecurity, privacy, social media and financial technology issues. Mr. Teleki also has experience conducting internal investigations and working on regulatory enforcement matters with the SEC and FINRA.


Barbara Stettner is the Head of Allen & Overy’s US Financial Services Regulatory Practice, a member of the Global Financial Services Regulatory Steering Committee, and a member of the Global Board. Barbara's practice focuses on advising U.S. and foreign financial institutions on their regulatory and compliance obligations under the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Bank Secrecy Act. Barbara has extensive experience representing foreign and domestic banks, asset managers, and broker-dealers on the various regulatory obligations of domestic and cross-border securities distributions and fundraising activities, including broker-dealer, investment adviser, finder and placement agent status questions, sales practice requirements, research, and custody arrangements. She regularly applies this experience in the Fintech and digital asset space to various custodians, “robo advisers,” “crowdfunding platforms,” and DLT (“blockchain”) or other digital securities distribution and trading platforms. She has a particular focus on the interstitial and complex regulatory issues that arise between bank, broker-dealer, and investment adviser affiliates who provide services to the same clients.

Before entering private practice, she worked at the SEC’s Division of Market Regulation (now Trading and Markets), where she served as Special Counsel in the Office of the Chief Counsel and as an Attorney-Advisor in the Office of Risk Management and Control. She also served as Senior Counsel in the Commission’s Office of International Affairs, where she worked on a multi-country committee to produce the first IOSCO paper addressing cross-border securities transactions over the Internet.  At the SEC and in private practice, Barbara served with the Financial Services Volunteer Corp, providing pro bono technical assistance to emerging markets on the regulatory and supervisory systems of markets and market intermediaries, including Jordan, the UAE, Russia, and Romania. She is a current member of the Board of Advisors of the SEC’s Historical Society.  

Barbara is widely recognized as a leading regulatory lawyer, having been recognized in Chambers USA in both Securities: Regulation: Advisory and Financial Services Regulation: Broker Dealer (Compliance). According to Chambers USA, Barbara is described as "an amazing broker-dealer attorney" by market commentators and impresses with the breadth of her advisory practice, which encompasses state and federal broker-dealer regulations and securities laws. A client says: "She is extremely knowledgeable and also not afraid to push the envelope to improve the regulatory environment."


Cathy Yoon is the North American General Counsel of INX Limited. Cathy’s experience includes over a decade of structuring and executing strategic transactions where she represented a diverse group of clients, including hedge funds, private equity firms, a large banking corporation, and other traditional capital markets institutions and market utilities. She has since dedicated her career to the development and growth of digital asset capital markets infrastructure- both on the cryptocurrency and digital asset security fronts. Cathy’s previous roles include co-head of the fintech and blockchain practice area at a major law firm, general counsel of Genesis Block, a blockchain advisory firm, and senior counsel at The Bank of New York Mellon. She is a member of several blockchain industry groups and serves as a steering committee member of Global Blockchain Convergence, a global blockchain policy think tank.


Daphna A. Waxman is a Senior Attorney in the Cyber Unit of the Division of Enforcement at the U.S. Securities and Exchange Commission.  She joined the SEC in 2001 and has investigated and prosecuted enforcement actions involving registration violations, insider trading, market manipulation, and offering and accounting fraud.  As a member of the Cyber Unit, her work focuses on matters related to distributed ledger technology, digital assets, and initial coin offerings.  She also served as Special Counsel to the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) within the SEC’s Division of Corporate Finance from November through July 2019.  Ms. Waxman received her JD from Brooklyn Law School in 2001, where she served on the Law Review, and her undergraduate degree from Cornell University in 1998.


LILYA TESSLER is a partner and head of Sidley’s FinTech and Blockchain group, which is recognized as a Band 2 practice in the 2021 Chambers Fintech guide and was named "FinTech Practice Group of the Year" by Law360 (2020). She focuses her practice on representing digital asset trading platforms, blockchain technology companies, U.S. and non-U.S. broker-dealers, financial services firms and cryptocurrency funds. Lilya is ranked in the 2021 Chambers Fintech guide in the USA Legal: Blockchain & Cryptocurrencies category and was named a “Rising Star” in Fintech by Law360 (2019).

Lilya advises technology companies on public and private securities offerings, including blockchain token distributions. She also counsels financial institutions and digital asset exchanges with day-to-day securities issues, private placement agent requirements, custody rule requirements, cross-border regulatory issues, money services business registration requirements, as well as FINRA and SEC regulatory inquiries. She advises several U.S. and non-U.S. FinTech companies, including robo-advisors and high-frequency trading firms in evaluating the broker-dealer and investment adviser registration requirements. 

Lilya is a member of Sidley’s global Securities Enforcement and Regulatory practice, which received the 2019 Chambers USA Award for “Financial Services Regulation,” and which was named the “Law Firm of the Year” for Securities Regulation in 2020 and 2017 by U.S. News – Best Lawyers. She works with transactional lawyers on structuring deals involving financial services and technology companies, digital asset exchanges and blockchain token offerings. She regularly assists both financial services firms and their vendors in negotiating U.S. and cross-border technology agreements for all types of services and considering the U.S. securities laws and broker-dealer regulatory issues associated with such technologies. Lilya has testified before the New Jersey Assembly Science, Innovation and Technology Committee on the economic development opportunities presented by blockchain technology innovation. 

Lilya is a frequent speaker and writer on various topics in FinTech, with a particular focus on distributed ledger technology, blockchain tokens and digital asset trading platforms. She participated in the Legislating Certainty for Cryptocurrencies Roundtable hosted by Congressman Warren Davidson.

Lilya is the founder and co-chair of the Digital Asset Regulatory and Legal Alliance (DARLA), an industry working group consisting of General Counsel and Chief Compliance Officers of prominent blockchain and digital asset businesses.


Bjorn is the General Counsel of Fundrise.

Prior to joining Fundrise, Bjorn spent over 8 years practicing securities and general corporate law, primarily at O'Melveny & Myers LLP and Venable LLP in Washington, DC, with short stopovers at the Securities and Exchange Commission and a Russian steel corporation.

Bjorn received his B.A. in Political Science from the University of North Dakota, and his J.D. from Georgetown University Law Center.


Daniel Alter is a Shareholder in the New York office of Murphy & McGonigle, P.C., who advises clients on a wide range of fintech regulatory matters and represents them in related litigation.  Previously, Danny was the first General Counsel for the New York Department of Financial Services and was one of the primary architects of New York’s regulatory scheme for virtual currencies.  He was also General Counsel to itBit (now Paxos), which is a New York Stated chartered trust company specializing in blockchain solutions for the financial services industry that also provides a fully regulated crypto exchange platform.


Deborah is Chief of the Money Laundering and Asset Recovery Section (MLARS) in the Criminal Division of the Department of Justice.  MLARS leads the Department’s anti-money laundering and asset forfeiture enforcement efforts, providing leadership in the prosecution and coordination of complex, sensitive, multi-district money laundering and asset forfeiture prosecutions. Deborah has been a criminal prosecutor with the Department of Justice for 24 years.  Prior to joining MLARS, Deborah served for more than 16 years as an Assistant United States Attorney in the U.S. Attorney’s Office for the District of Columbia.  Prior to joining the U.S. Attorney’s Office Deborah was a Trial Attorney in the Antitrust Division and an Associate at a large D.C. law firm.  She is an adjunct professor of Trial Advocacy at Georgetown University Law Center where she graduated with a J.D. cum laude in 1994.


Jeremy I. Senderowicz is a Shareholder in Vedder Price’s New York office and a member of the firm’s Investment Services practice group. He focuses his practice on advising registered investment companies, private funds and their investment advisers on a variety of matters pertaining to the Investment Company Act of 1940, the Investment Advisers Act of 1940 and other securities laws. He is a leading practitioner in the area of exchange-traded funds (ETFs), with extensive experience representing ETF sponsors and ETF fund complexes. Mr. Senderowicz has also advised numerous clients in matters relating to cryptocurrency and blockchains, including proposed offerings of bitcoin ETFs and other issues relating to funds which invest in cryptocurrency and the use of blockchains by asset managers and in securities offerings.


K. Susan Grafton counsels a wide variety of broker-dealers, including U.S. and multinational broker- dealers, full service firms, institutional and retail broker-dealers, equity and fixed income alternativetrading systems, investment banking boutiques, and private placement agents as well as securities exchanges. She has been ranked nationally by Chambers USA in the Broker-Dealer (Compliance) category since 2010 and is recognized in The Legal 500 US for fintech. In the most recent edition of Chambers, clients noted that "She helps us to think through complex issues with recent SEC issues and how to navigate them. She is a very keen listener and spends a lot of time trying to understand our business and the outcomes that we desire. She is a terrific lawyer who really supports her clients well." "Susan is an expert on broker-dealer regulation - thoughtful, engaging, knowledgeable and practical." Past editions noted that “the ‘very smart’ Susan Grafton demonstrates strength advising global broker- dealers and investment banks on a comprehensive range of regulatory matters. Her compliance expertise encompasses, among other areas, SEC, FINRA and CFTC regulations. A source says: ‘She has a wealth of experience and knows how to apply it practically to clients.’”

Ms. Grafton’s practice includes representing broker-dealers in all aspects of regulatory compliance,beginning with assisting them in registering with the SEC – as alternative trading systems as well as broker-dealers – and obtaining membership in the Financial Industry Regulatory Authority (FINRA) and other self-regulatory organizations (SROs). As part of this process, she drafts all needed documents, such as written supervisory procedures, customer account documents, soft dollars and commission sharing agreements, and electronic access agreements. She also advises clients on new business initiatives and assists them in obtaining required SRO and state approvals. Similarly, she handles the regulatory approvals in connection with changes of control of broker-dealers. Ms. Grafton also advises clients on broker-dealer status questions for themselves and their employees, including compliance with the Rule 15a-6 safe harbor for foreign broker-dealers and drafts agreements and procedures related to the same.

Ms. Grafton’s practice is wide ranging and includes advising clients on regulatory issues related to nearly every aspect of a broker-dealer’s business, financial, operations and supervisory responsibilities. For example, she advises clients on compliance issues relating to Regulations ATS, NMS, SCI and SHO; sponsored access and other electronic trading issues; large trader and position reporting; suitability and standard of care issues; Regulation M and FINRA’s corporate finance rules; information barriers and insider trading; soft dollars and commission sharing arrangements; research, social media and other written communications; political contributions, outsourcing and expense sharing arrangements; the net capital and customer protection rules; cyber security and data protection issues; books-and-records requirements; and OATS and trade reporting. She is frequently consulted on strategic issues, including the implications of acquiring other financial institutions and developing compliant management and supervisory structures. Ms. Grafton has drafted firmwide and business- specific policies and procedures.

She also represents retail investment advisers, hedge fund and other private fund managers, research providers and trade associations representing the financial services industry. She has been involved in several key policy issues arising from the Dodd-Frank Act, including the uniform standard of care for broker-dealers and investment advisers, municipal advisor registration, private fund adviser registration, and compliance officer responsibilities under new CFTC rules.

Ms. Grafton frequently represents broker-dealers and investment advisers before the SEC and FINRA in connection with regulatory examinations and enforcement investigations pertaining to a wide range of issues, including most recently registration requirements; Rule 15a-6 “chaperoning” arrangements; outside business activities; best execution; markups and markdown, Regulations ATS, M, NMS and SHO; the net capital and customer protection rules; margin requirements; wrap accounts; disclosures; prospectus delivery; supervision; and marketing materials and advertising. She also regularly conducts in-house training on a variety of topics, including preparation for regulatory examinations.

Ms. Grafton has a unique combination of regulatory, in-house and law firm experience. She began her career with the SEC’s Division of Trading and Markets (formerly Market Regulation) where she was responsible for interpretations and no-action relief with respect to the net capital and customer protection rules and broker-dealer books and records requirements. She also led several significant rulemaking initiatives, including the proposal and adoption of Regulation M and amendments to Rules 10b-18, and provided regulatory exemptions and interpretations that facilitated numerous multinational securities offerings, merger transactions, and exchange offers. Subsequently, Ms. Grafton served as a vice president and associate general counsel of Goldman Sachs where she advised on a variety of strategic, regulatory compliance and operational issues related to the firm’s institutional equities sales and trading businesses. Ms. Grafton is currently a member of the Board of Trustees of the SEC Historical Society.

 


Mr. Newman serves as Senior Regulatory Counsel at Motley Fool Wealth Management, LLC.   He advises the company and its advisory affiliates on a variety of regulatory, corporate and business matters, including compliance with U.S. laws and regulations governing the operations of registered investment companies and investment advisers.

Before joining Fool Wealth, Mr. Newman served as Associate General Counsel with a global asset management firm, followed by an assignment in the SEC’s Division of Investment Management. Mr. Newman spent most of his career as a corporate and securities associate in the Washington, D.C. and Hong Kong offices of a prominent U.S. financial services law firm.


Mr. Trackman has a longstanding interest in law and technology.  He began his career conducting research in Central America to support digitalization and reform of the national land registries.  After work in private practice, Mr. Trackman joined the Securities and Exchange Commission, where he reviewed novel derivative securities products.  He was on the team that analyzed the Gold ETF, the first commodity asset-backed exchange traded fund, and developed standards to permit listing of similar products.  He later oversaw the registration program for alternative trading systems.  Following the financial crisis, Mr. Trackman contributed to the Dodd-Frank implementation effort at the SEC and then the Commodity Futures Trading Commission.  In 2017, Mr. Trackman joined the effort to help stand up the CFTC’s new innovation office, LabCFTC.  LabCFTC seeks to promote responsible innovation through engagement with innovators, education, and policy development.  Now as Senior Counsel to LabCFTC, Mr. Trackman advises on a wide range of fintech topics and provides thought leadership on potential impacts of new technology.


Ms. Jennifer Riegel is a special counsel in the Office of Small Business Policy in the Division of Corporation Finance of the U.S. Securities and Exchange Commission.  The office assists companies seeking to raise capital through exempt or smaller registered offerings, and participates in and reviews SEC rulemaking and other actions that may affect small businesses.

Previously, Ms. Riegel served as a senior special counsel to the director of the Division of Corporation Finance and special counsel in the Office of Health Care and Insurance.  Prior to joining the SEC, Ms. Riegel practiced corporate and securities law at the Palo Alto office of Cooley LLP. 

She received her law degree, summa cum laude, from Santa Clara University School of Law and her B.A. in political science, cum laude, from Boston University.


Rochelle Kauffman Plesset is a Senior Counsel in the Chief Counsel's Office in the SEC’s Division of Investment Management. During her long career at the SEC, Rochelle has been involved in all aspects of investment company and investment adviser regulation, participating in a variety of rulemaking and interpretive initiatives for the Division. Notably, she drafted rules under the Investment Company Act that address the status of asset-backed issuers and investment advisory programs under that Act. Rochelle was primarily responsible for researching and drafting Chapter 1, The Treatment of Structured Finance under the Investment Company Act, in the Division’s report, Protecting Investors: A Half Century of Investment Company Act Regulation.  She also participated in the drafting of the staff report, Implications of the Growth of Hedge Funds. More recently, Rochelle was a prime drafter of the Division’s guidance on robo-advisers. For her efforts, Rochelle was awarded the SEC Staff Excellence Award in June 2018.


Dror Futter focuses his practice on startup and blockchain companies and their investors, and has worked with a wide range of technology companies. His fifteen years’ experience as in-house counsel included positions with Vidyo, Inc., a venture-backed videoconferencing company, and New Venture Partners, a venture fund focused on corporate spinouts. Prior to that, Mr. Futter was Counsel to the CIO of Lucent Technologies, as well as supporting parts of its sourcing organization.

Mr. Futter’s practice has three main focus areas:

Venture Finance/Corporate 
Mr. Futter has represented companies and venture funds in numerous equity and debt financing rounds, from early “friends and family” and Seed rounds to later-stage mezzanine financings, and has been on both sides of the table in these transactions. On the corporate side, he routinely handles corporate formations, employee equity plans and mergers and acquisitions. Mr. Futter has also been involved in over 40 corporate spinouts and understands the unique concerns of corporate venture investors.

Blockchain and Cryptocurrencies 
Mr. Futter advises clients with respect to legal developments in the rapidly developing blockchain and cryptocurrency spaces.   He has advised on ICO’s and has worked with consortia considering the issues involved in using permissioned blockchains to support supply chain record keeping.

Transactional IT & IP
Mr. Futter represents clients in a broad range of transactions, including: software licenses, SaaS Agreements, outsourcing agreements, development agreements, website terms and conditions, patent licenses, direct and indirect channel distribution agreements, services agreements, manufacturing agreements, and other supply chain agreements.

Mr. Futter serves on the Model Forms Drafting Group of the National Venture Capital Association, the legal advisory board of the Angel Capital Association and Legal Working Group of the Wall Street Blockchain Alliance. He is also a frequent speaker and writer on venture and blockchain related topics.  In addition, Mr. Futter is an Entrepreneur in Residence at the Stevens Venture Center of the Stevens Institute of Technology and a Mentor at Princeton University’s Keller Center.

Mr. Futter is a 1986 magna cum laude graduate of Princeton University and 1989 graduate of Columbia University School of Law. He also earned an Executive MBA in 1999 from the American Electronics Association Executive Institute of Stanford University.