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Dually Registered Broker-Dealers and Advisers – Regulatory, Compliance and Enforcement 2021


Speaker(s): Cece Baute Mavico, Cheryl L. Haas, Clifford E. Kirsch, Issa J. Hanna, John C. Munch, John S. Polise, Joseph M. Gallo, Julie K. Glynn, Ronak V. Patel
Recorded on: Feb. 1, 2021
PLI Program #: 303155

Cliff Kirsch began his career at the U.S. Securities and Exchange Commission (SEC), became chief legal officer for one of the country’s largest dually- registered broker-dealer/advisers and then joined Sutherland (now Eversheds Sutherland) in 2006. He relies on his regulatory and in- house background and an up-to-date knowledge of regulatory developments to provide practical and innovative counsel to broker-dealers and investment advisers in the areas of securities regulation and compliance.

With more than 25 years of experience, Cliff regularly counsels clients on the design and distribution of investment products including wrap-fee programs and other advisory products, mutual funds, bank collective investment funds and insurance products. He also focuses on issues related to the design and implementation of compliance programs at financial services firms.

While at the SEC, Cliff received the Manuel F. Cohen Award, which recognizes younger lawyers who have displayed outstanding legal ability, integrity and judgment and he served as assistant director of the SEC's Division of Investment Management.

Cliff is a frequent speaker at industry conferences, and is the author and editor of two of the leading treatises in the broker-dealer and adviser arena: Broker-Dealer Regulation and Investment Adviser Regulation (published by the Practising Law Institute).

Cliff is also co-founder of the Julia Anne Kirsch Foundation, which seeks to serve the needs of disabled individuals and their families.

Experience

Eversheds Sutherland counsels a coalition of major life insurance companies on evolving state and federal regulations and other legal developments.

Eversheds Sutherland represents a coalition of major life insurance companies, which collectively account for more than 80% of the annuity business in the United States, in their efforts to affect the direction and details of various SEC, FINRA, CFTC, NAIC and state rule proposals and initiatives.

Eversheds Sutherland serves as outside counsel on broker-dealer and adviser regulatory issues for one of the largest independent broker-dealer networks in the country.  Eversheds Sutherland serves as regular primary outside counsel on broker-dealer and adviser regulatory issues for one of the largest independent broker-dealer networks in the country.

Eversheds Sutherland represents coalition of collective trust fund sponsors, advisers and other service providers.

Eversheds Sutherland serves as counsel to the Coalition of Collective Trust Funds. Among other things, Sutherland monitors and reports on legal and regulatory matters affecting collective trust funds.

Professional Activities

Member, New York City Bar Association

Faculty, FINRA Compliance Institute at The Wharton School of the University of Pennsylvania

Former Chair, FINRA Variable Products Committee

Former Board Member, National Society of Compliance Professionals


John Polise is the Associate Director in the Office of Compliance Inspections and Examinations new Broker-Dealer/ Exchange Group (BDX).  He heads the National Examination Program for registered broker-dealers and exchanges.  Previously he lead the Market Oversight Group where he supervised  the inspection of all domestic equity and options exchanges, the operation of FINRA, the MSRB and SIPIC.    Mr. Polise has served as an Assistant Director in the SEC’s Division of Enforcement, the Division of Trading and Markets, and the Office of Compliance Inspections and Examinations.  Mr. Polise was Counsel to the Chairman of the SEC, Counsel to the Chairman of the CFTC, Counsel to the Director, Division of Enforcement at the CFTC and Counsel to the Director for Markets at the SEC’s Division of Enforcement.   He has held positions at FINRA in both Enforcement and Member Regulation.  He began his career as an Associate at Cahill Gordon & Reindel in New York and clerked for the Honorable Stanley Sporkin, US District Court for the District of Columbia.  He graduated from the University of Pennsylvania, magna cum laude in 1985 and is a 1988 graduate of New York University School of Law.   He has been an adjunct professor at Georgetown University School of Law and is currently an adjunct professor, teaching securities regulation at George Mason School of Law.


Joseph Gallo is Chief Counsel and Vice-President of Lincoln Financial Network (LFN), Lincoln Financial Group’s affiliated retail wealth management firm. Mr. Gallo is responsible for overseeing the strategic legal advice, support and counseling provided to LFN senior management regarding all aspects of LFN’s retail wealth management and distribution services.  

Over the last sixteen years, Mr. Gallo has served in a variety of senior counsel roles with several industry leading financial firms focusing his practice on securities law matters including the investment management and retail wealth management practice areas. In addition, Mr. Gallo currently serves as an Advisory Council Member with the Financial Services Institute (FSI) and a Distribution Committee Member of the American Council of Life Insurers (ACLI). Mr. Gallo graduated from the Catholic University of America Columbus School of Law and served as a law clerk to both the U.S. Securities and Exchange Commission and the U.S. Department of Labor during law school. 


Julie Glynn joined JPMorgan Chase in 2011 and is currently the General Counsel of its US Wealth Management business, which includes Chase Wealth Management, J.P. Morgan Advisors, Digital Wealth Management, National Branch and You Invest.  Her other roles at JPMC include regulatory and investigations and assisting in broker-dealer governance.  Prior to working at JP Morgan Chase she worked at FINRA, Morgan Stanley, and Morrison & Foerster and completed a fellowship at Georgetown Law School. 


As chair of McGuireWoods’ Financial Services Litigation Department, Cheryl represents companies across the country in high-stakes disputes in federal and state courts as well as before the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority and state securities regulators.

Cheryl represents Fortune 100 companies, investment companies and advisers, broker-dealers and private individuals. In addition to her commercial litigation practice, she represents broker-dealer and investment advisors in securities enforcement matters, FINRA arbitration, and in public and private investigations. She monitors regulatory developments, advises clients on compliance matters and conducts internal investigations. In addition, she represents companies involved in regulatory investigations concerning alleged securities or accounting fraud, Ponzi schemes, insider trading, privacy, supervision and other issues.

She has been named as a “Leading Lawyer” for General Commercial Disputes, Georgia, Legal 500 US and a 2020 Georgia Trailblazer by the Daily Report.  In addition, she was named a BTI Client Service All Star in 2020.

Prior to private practice in New York and Atlanta, Cheryl clerked for then-U.S. District Judge David G. Trager of the Eastern District of New York.

Cheryl serves on McGuireWoods’ Diversity Action Committee and on the board of the nonprofit Grove Park Foundation.

EDUCATION

  • New York University School of Law, JD, cum laude, Senior Articles Editor, New York University Law Review
  •  Emory University, BA, Phi Beta Kappa


Cece is a managing attorney in LPL’s Compliance, Legal, and Risk organization, specifically the Head of Regulatory Strategy & Special Investigations.  She and her team are responsible for representing the firm in complex regulatory matters, advising on regulatory strategy, and leading internal investigations.  She is located in LPL Financial’s Fort Mill office.

Prior to joining LPL Financial in 2015, Ms. Mavico was in private practice where she focused on securities regulatory and enforcement matters and with the NASD in Washington, DC.  Ms. Mavico started her career in the financial services industry in compliance and held various securities and insurance licenses.  Ms. Mavico received a Bachelor of Science in Finance from Trinity University and a Juris Doctor from American University, Washington College of Law.  She is a member of the New York, District of Columbia and Texas Bar Associations.


With over a decade of experience in securities and insurance law, Issa Hanna helps broker-dealers, investment advisers, investment funds and insurance producers comply with the regulatory requirements applicable to their businesses. He has deep experience counseling and advising clients on the evolving standards of conduct in the financial services space, and closely follows developments relating to SEC Regulation Best Interest, the investment adviser fiduciary duty, and state securities and insurance laws imposing standards of conduct on broker-dealers, investment advisers and insurance producers. Issa frequently helps clients develop, revise and update policies and procedures, distribution and service agreements and disclosures to reflect the impact of new rules, regulations and interpretations. Issa also counsels clients through regulatory issues arising out of transactions they engage in, such as obtaining regulatory approvals of transactions, obtaining end-client consents, and assessing the regulatory risks associated with proposed transactions.     

In addition to his client work at Eversheds Sutherland, Issa is actively involved in the firm’s Pro Bono, Diversity and Professional Development Committees. He is also a frequent speaker with respect to current regulatory issues and has been published in a number of industry publications and treatises.


Ronak Patel is a member of Winstead’s Litigation Practice Group and Securities Litigation & Enforcement Practice Group. He focuses on a wide range of securities regulatory and litigation matters. He is an experienced litigation attorney who possesses extensive regulatory experience with securities regulatory agencies across the U.S.

Before establishing his private practice, Ronak served as Deputy Securities Commissioner of Texas. He held numerous leadership positions with the North American Securities Administrators Association (NASAA), working very closely with state and federal securities regulators across the country. As a regulator, he led the prosecution of a number of high profile investigations involving matters such as the 2008 failure of the auction rate securities market, Ponzi schemes, broker misconduct and complex investment products. Patel now draws on that experience to navigate broker-dealers and investment advisers through complex regulatory investigation, enforcement actions, and litigation involving allegations such as failures to supervise, fraud, and breach of fiduciary duty.

Patel practices before the Texas State Securities Board, the Massachusetts Securities Division, the Florida Office of Financial Regulation and many other state securities regulators as well as the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Consumer Financial Protection Bureau (CFPB), and the Commodity Futures Trading Commission (CFTC).He represents broker-dealers, investment advisers, hedge funds and other private funds, public companies, asset managers, gate-keepers, and other institutions in government investigations, securities law enforcement matters and related litigation. 

Select Matters as Securities Regulator

  • Led complex investigation and litigation related to major Wall Street firms related to the auction rate securities (ARS) market. Key participant in global settlement negotiations with multiple financial institutions resulting in approximately $50 billion in equitable relief to investors.
  • Headed a multi-state investigation and settlement related to a multi-million dollar market manipulation and fraudulent conduct by an issuer and the role of a broker-dealer in aiding-and-abetting the issuer’s conduct.
  • Led complex investigation of Texas based investment adviser running a $50 million fraud scheme involving real estate limited partnerships. Lead attorney for administrative action and criminal referral to U.S. Attorney.
  • Leadership role in a national task force investigating sales and supervision practices related to the sale of non-traded Real Estate Investment Trusts (REITs).
  • Investigated a national brokerage firm’s supervisory systems and controls as a result of a broker “selling away” $5.5 million in investments.

Professional & Community Involvement

  • State Bar of Texas
  • Texas Advocacy Project, Board Member

Awards & Recognition

  • NASAA Patricia D. Stuck Award, 2016 
  • NASAA Outstanding Team Service Award (Dodd-Frank Studies Working Group), 2011 
  • NASAA Outstanding Team Service Award (Auction Rate Securities Task Force), 2010

Admitted to Practice

  •  Texas, 2002


John Munch has been a member of SEI’s Legal Team since 2001 and General Counsel of SEI Investments Distribution Co., SEI’s broker-dealer subsidiary, since 2004.  In addition, Mr. Munch leads the SEI Legal Department teams responsible for supporting SEI’s business units globally.  Prior to joining SEI, Mr. Munch was an associate with the law firm of Howard Rice Nemorvoski Canady Falk & Rabkin and, prior thereto, Seward & Kissel, specializing in the representation of mutual funds, investment advisers and broker-dealers.   Mr. Munch is a graduate of the University of Connecticut (B.A.) and Tulane Law School (J.D.).