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The Regulation of Investment Funds Fordham Journal of Corporate & Financial Law Volume 16 Issue 1 Book 1 Article 1 2010 Symposium: The Regulation Of Investment Funds Andrew J. Donohue U.S. Securities and Exchange Commission Paul N. Roth Schulte Roth & Zabel LLP Mattew B. Siano Two Sigma Investments, LLC J.W. Verret George Mason University School of Law Follow this and additional works at: https://ir.lawnet.fordham.edu/jcfl Part of the Business Organizations Law Commons, and the Securities Law Commons Recommended Citation Andrew J. Donohue, Paul N. Roth, Mattew B. Siano, and J.W. Verret, Symposium: The Regulation Of Investment Funds, 16 Fordham J. Corp. & Fin. L. 1 (2011). Available at: https://ir.lawnet.fordham.edu/jcfl/vol16/iss1/1 This Conference Proceeding is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Journal of Corporate & Financial Law by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact [email protected]. SYMPOSIUM THE REGULATION OF INVESTMENT FUNDS* WELCOME DEAN WILLIAM MICHAEL TREANOR FORDHAM UNIVERSITY SCHOOL OF LAW AUDRA WHITE FORDHAM JOURNAL OF CORPORATE & FINANCIAL LAW MODERATOR JAMES JALIL THOMPSON HINE LLP PANELISTS ANDREW J. DONOHUE U.S. SECURITIES AND EXCHANGE COMMISSION PAUL N. ROTH SCHULTE ROTH & ZABEL LLP MATTHEW B. SIANO TWO SIGMA INVESTMENTS, LLC J.W. VERRET GEORGE MASON UNIVERSITY SCHOOL OF LAW HOLLAND WEST SHEARMAN & STERLING LLP * This symposium was held at Fordham University School of Law on February 19, 2010. It has been edited to remove minor, awkward, cadences of speech. 1 2 FORDHAM JOURNAL [Vol. XVI OF CORPORATE & FINANCIAL LAW WELCOME DEAN TREANOR: Good morning, everyone. My name is Bill Treanor. I’m the Dean of Fordham Law School. I’m delighted to welcome you to today’s Symposium on “The Regulation of Investment Funds,” which is sponsored by the Fordham Journal of Corporate & Financial Law. We are very proud to be able to host this really extraordinarily distinguished panel of experts on investment management funds. It’s an important and timely topic, when considered in the context of the current political-economic climate and the continuing debate over the role the government should play in the private financial sector. This is the third Symposium that has been hosted by our student- edited Fordham Journal of Corporate & Financial Law, and I’d like to thank the editors and staff of the Journal for all their hard work in putting this event together. I’d like to especially recognize Audra White, a 3L, who is in the first row, who is the Symposium Editor of the Journal, and who conceived of this program and worked tirelessly to make this day so successful. Audra. [Applause] The opportunity for students to plan and execute a program of this magnitude is a crucial component in the excellent legal education experiences that Fordham Law offers to students. It’s especially gratifying for the Law School to have adjunct faculty who represent the best of New York’s practicing bar and for them to take time out of their busy schedules, not only to teach our students about the most pressing issues that they themselves are confronting, but to participate in our programs. We are fortunate today to have, to my left, James Jalil, a partner at Thompson Hine, as our Symposium Moderator. [Applause] I just have to say I read all the teaching evaluations, and it’s always humbling for me to read Professor Jalil’s teaching evaluations, they’re so good. Fordham Law School is a school that takes business law very seriously. One of the ways in which we show our commitment to business law is through our Corporate Law Center, which I think is really the finest corporate law center in the country — with apologies 2011] THE REGULATION OF INVESTMENT FUNDS 3 perhaps to Mr. West — and our corporate law Journal. The Journal is one of the five most cited corporate law journals in the country. It has extraordinary influence. It was cited by the Supreme Court in 2005 in the Arthur Andersen case. The Fordham Corporate Law Center was founded in 2001 to serve as a focal point for excellence and innovation in current and emerging issues in business law and in business. I’d like to particularly recognize the Executive Director of our Corporate Law Center, who just does a fabulous job and who worked to help put together this Symposium, Ann Rakoff, who’s in the back. [Applause] Now, in 2009 alone the Corporate Law Center has brought to the Law School such distinguished speakers as William Dudley, the President of the Federal Reserve Bank of New York, and SEC Commissioner Elisse Walter. Next month the Center is hosting three exciting programs. You can find more details about them on our website. But I just want to call your attention to the very first one, which will be on March 8th, which is our DeStefano Lecture, which will be on “Corporate Accountability, Governance, and Compensation Issues,” which will have as the Moderator Judge Sporkin and participants Todd Lang, Gary Naftalis, and Jeffrey Sonnenfeld. When I teach, I always say there’s one or two take-away points that I want to convey to the class. So my take-away points here are (1) Fordham Law is very serious about business law — I want that to sink in; it will be on the pop quiz later; and (2) this is going to be a fabulous, fabulous Symposium about an incredibly timely topic, and we’re privileged to be able to host it. Without any further ado, I think I’m turning matters over to Audra. [Applause] AUDRA WHITE: Good morning, everyone. I’d like to thank all of you for coming here today. I’m very excited to host this Symposium. It was a long time in coming. I want to thank the Dean for his very kind words and for hosting us here at the Law School today. I also want to thank everyone in the audience who’s a distinguished member of our practicing alumni community. I know we have a lot of alumni here today also. Most of all, I’d really like to thank Ann Rakoff, whom the Dean 4 FORDHAM JOURNAL [Vol. XVI OF CORPORATE & FINANCIAL LAW also mentioned, the Executive Director of our Corporate Law Center. She has been just instrumental in helping me with everything that went into this event. And also Zachary Slates, who has been there the entire time with everything that I needed. Both of them have really been a tremendous asset in making this possible today. The Law School is also honored to have my professor, James Jalil, a partner at Thompson Hine, as our Moderator today. He’s an adjunct professor of Securities Regulation here at Fordham. Mr. Jalil is a member of Thompson Hine’s Executive Committee and is also a member of the Investment Management subgroup at Thompson Hine. Today he brings over 30 years of experience representing hedge funds, investment managers, and registered investment advisers. We’re very grateful to have his wisdom on the panel today. So thank you again and without further ado, I will go ahead and turn it over to Mr. Jalil. PANEL DISCUSSION JAMES JALIL: Thank you, Audra. Thank you and welcome. We have an unbelievable panel today, and I’m personally looking forward to the discussion. What we’re going to do is I’ll introduce the panelists and then we’re going to have a discussion. Each panelist will make brief remarks, then we’ll have a discussion. After the break, we’re going to continue the discussion, and then we’ll take questions from the audience. Introducing this panel is a privilege. To my left, Andrew “Buddy” Donohue is the Director of the Division of Investment Management of the United States Securities and Exchange Commission. For those of you who may not know, that’s a very big deal. We’re honored to have him here today. He was sworn in by Chairman Christopher Cox in May 2006. He is one of the most senior financial services regulators in the United States, with principal oversight for the over-$40-trillion investment management industry. As Director, Mr. Donohue is responsible for developing regulatory policy and administering the federal securities laws applicable to mutual funds, ETFs, closed-end funds, variable insurance products, UITs, and investment advisers. 2011] THE REGULATION OF INVESTMENT FUNDS 5 What I personally admire about Buddy Donohue is he comes to the Commission with an industry background. Prior to becoming Investment Management Director, Mr. Donohue was Global General Counsel for Merrill Lynch Investment Managers. In that position, he oversaw the firm’s legal and regulatory compliance functions for over $500 billion in assets including mutual funds, fixed income funds, hedge funds, private equities, managed futures, and exchange funds. Prior to Merrill Lynch, he spent more than a decade as Executive Vice President, General Counsel, Director, and member of the Executive Committee for OppenheimerFunds. He brings over 30 years’ experience in the financial services industry to the Commission. He is a graduate of New York University School of Law and graduated with honors from Hofstra University in 1972. He has three children and three grandchildren. Welcome, Buddy. To his left, we’re really privileged to have one of the giants in the legal industry. Paul Roth is a founding partner of Schulte Roth & Zabel, a member of the firm’s Executive Committee, and Chair of the firm’s Investment Management Group.
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