Tag: SEC



Alumni in the news

Mikhail Pevzner, associate professor of accounting in the University of Baltimore’s Merrick School of Business and program director of Merrick’s Master in Accounting and Business Advisory Services program, has been appointed an Academic Accounting Fellow for the U.S. Securities and Exchange Commission’s Office of the Chief Accountant. He will serve in this role in the SEC’s Washington, D.C. offices beginning this August and continuing for one year. Pevzner earned his PhD at Olin.

The Office of the Chief Accountant acts as the primary adviser to the SEC on auditing and accounting matters. Academic Accounting Fellows serve as research resources for SEC staff by interpreting and communicating research materials as they relate to the agency.

The fellows have been assigned to ongoing projects in the Chief Accountant’s office including rulemaking, monitoring the developments of the accounting and auditing standards-setting bodies, and consulting with registrants on accounting, auditing, independence and reporting matters.

MPevzner196Pevzner says he is deeply honored that the SEC has selected him to be one of the two visiting academic fellows during the upcoming academic year.

“I sincerely hope that my academic expertise in auditing and financial reporting will help the SEC in their very important mission of ensuring the effective regulatory oversight of the U.S. capital markets,” he said. “I want to express my deep thanks to everyone within and outside UB for their support in my pursuit of this highly prestigious fellowship. I am very hopeful that the knowledge I will gain from working at the SEC will greatly benefit UB students and my faculty colleagues upon my return to teaching.”

Pevzner earned a bachelor’s in business administration with a focus in accounting from the University of Minnesota. He earned Ph.D. in business administration with concentration in accounting from Washington University in St. Louis and is a licensed CPA in Maryland and Minnesota. Pevzner is a member of the American Accounting Association and the Maryland Association of CPAs. He holds the Merrick School’s EY Chair in Accounting and its Yale Gordon Chair in Distinguished Teaching. He also serves as academic director for the M.S. in Accounting and Business Advisory program.

Pevzner recently was awarded the school’s Black & Decker Outstanding Article award for a co-authored paper entitled “When Firms Talk, Do Investors Listen? The Role of Trust in Stock Market Reactions to Corporate Earnings Announcements.” The article, co-authored with Profs. Fei Xie of University of Delaware and Xiangang Xin of City University of Hong Kong, was published in July 2015 issue of Journal of Financial Economics.

From August 4, 2016 News Release from The University of Baltimore

 




Carlton Fields Jorden BurtOur morning session on May 26 kicked off with Jason Gould and Richard Choi, two inspiring speakers from Carlton Field Jorden Burt. Carlton Fields is a leading provider of legal and consultation services, mostly to financial institutions, offering solutions to compliance systems and fighting for clients in court. They described the necessity of regulation and the degree of regulation that will protect the industry as well as avoid burdening the business. After various meetings with legislative representatives, we complete our tour in D.C. by hearing from the other side of the aisle. We saw their passion and commitment to speak for regulation objectives and represent their interests. Regulation and legislation together make the financial industry healthy and secure.

Next, we departed for Capitol Hill and met with Mr. Ron Klein, a former U.S. Congressman for Florida in the House of Representatives. He served on the full Financial Services Committee, and was also a member of the subcommittee on capital markets, insurance, and government-sponsored enterprises, in addition to the subcommittee on financial institutions and consumer credit. With all this experience, he shared with us his opinions on the mortgage industry, Sarbanes Oxley, the 2007-2009 financial crisis, Fintech, government regulation, student loans, and even his thoughts on the TV series House of Cards.

Day 9 - Capitol Clock

During the speech, we heard the buzzers from the clock on the wall several times. Mr. Klein explained to us that if there are 5 bells and 5 lights on the left, there is a five-minute vote taking place. If there are 3 bells, a pause, and 5 more bells, there is a 15-minute quorum call immediately after the five-minute recorded vote.

After a short lunch break, we headed to International Monetary Fund (IMF) for a meeting to learn about its history and current role. The speaker began by sharing with us the history of the IMF, and providing insight into the IMF’s roots and its founders. Basically, it is an international central bank which promotes financial stability and cooperation between countries. We have come to appreciate its role as an international corporation. In the Q&A session, one student asked about how to determine if a country’s currency is undervalued or overvalued. The speaker spent a good deal of time answering the question, solving the doubt for students.

Day 9 - IMF

After leaving the IMF, we finally got the chance to explore the mysterious and globally renowned Brookings Institute. We then came back to the conference room and learned from Mr. Paul Gumagay, Senior Special Counsel, Office of International Affairs at the Securities and Exchange Commission (SEC).

Day 9 - SEC

Mr. Gumagay’s speech was very comprehensive. He started from the very beginning of the SEC and outlined the history and structure of the organization. His presentation was also full of stories from the finance world, which helped us better understand the significance of financial regulations.

In the Q&A session, Mr. Gumagay answered questions concerning regulation of crowdfunding, lending clubs, and other kinds of financial technology firms. Combining this with what we’ve already learned about Fintech and regulation, we now have a more thorough understanding of the concept of Fintech, and how people can better utilize it to make the financial world more efficient and accessible.

Guest Bloggers: Qu (Ashley) Chen, Jialu (Lily) Zhu, Zhiru (Shirley) Lin, Mengchuan (Kitty) Wang (GMF 2016)

This is a series of blogs chronicling the experiences of 41 Global Master of Finance (GMF) dual degree students during their two week immersion course in New York and Washington, DC. Each blog will be written by a small subset of students during their experience.




Today, new rules go into effect that allow anyone to invest in a startup and receive shares in that startup. Previously, the Securities and Exchange Commission required investors backing private companies to have a minimum net worth of at least $1 million or an annual income of at least $200,000.

Olin’s Cliff Holekamp, senior lecturer in entrepreneurship and director of the entrepreneurship platform says the new rules will expand the entrepreneurial playing field, to a point.

Cliff Holekamp

Cliff Holekamp

“Due to concerns for consumer protection from fraud, the SEC has historically restricted the right to invest in startups and other private investments to wealthy ‘accredited investors.’ The new rules going into effect this week open the door slightly to allow non-accredited investors to invest small amounts into startups under certain limits and with additional regulatory and reporting requirements for the entrepreneurs,” said Holekamp.

The major shift enables crowdfunding for debt and equity. Startups raising seed money through SEC-approved online sites will now be able to sell shares to people regardless of their wealth. Previously, those companies were limited to rewarding backers solicited from crowdfunding sites with in-kind types of rewards, such as branding materials or early product prototypes.

While the change is seen as a way to make the entrepreneurial investment process more equitable, Holekamp says don’t expect a free-for-all.

“These rules do not bust the door wide open to wild-west wheeling and dealing that many detractors had feared, nor does it open up the capital markets to the degree that many entrepreneurs had hoped. It does, however, offer an incremental step toward a more even playing field where average investors would have the same rights as the wealthy,” Holekamp said.

by Erika Ebsworth-Goold, WashU, The Source




When Congress passed the Jumpstart Our Business Startups Act in 2012, a proposal for a system of “equity crowdfunding” to back entrepreneurial ventures was included. There was excitement about democratizing investments beyond the virtual monopoly of venture capital funds. It’s been three years, and the Securities and Exchange Commission  just issued 685 pages of crowdfunding rules last week which won’t take effect until after a 90-day comment period and final vote.

Dave Nicklaus takes a look at the new rules in his St. Louis Post-Dispatch column and gets Cliff Holekamp’s read on the issue.

Cliff Holekamp, a partner at Cultivation Capital who teaches an entrepreneurship class at Washington University, advises founders to approach the new rules warily. If you pitch your company later to traditional venture capitalists, he said, they may not want to deal with dozens of $2,000 investors who backed your crowdfunding campaign.

“I’m advising my students and entrepreneurs I work with to stick with the old rules until we learn how the new rules are going to play out,” Holekamp said. “But the more options we can provide for entrepreneurs, the better.”

Holekamp is senior lecturer in entrepreneurship and director of the MBA Entrepreneurship Platform at Olin.

Link to Nicklaus’ column.

 

 




To begin day four, Jason Gould and Richard Choi, shareholders at the Carlton Fields Jorden Burt (CFJB) law firm, shared their insights about regulation and litigation in the financial services sector. CFJB surveyed many firms to investigate fraud in the financial industry. They are typically capable of breaking the fraudulent company down rather than putting the executives in the jail. They also shared some great thoughts about document preservation amid concerns of privacy security. Surprisingly, they hold a view that litigation is complicated and time-wasting.

Next, we departed for Capitol Hill, where Congresswoman Ann Wagner, (R-MO) was waiting for us. As a member of the Committee on Financial Services, she skillfully introduced us to the Retail Investor Protection Act (RIPA), transportation issues, human trafficking, as well as other legislation that has been implemented to protect access to affordable investments for middle class families.

In the afternoon, we welcomed Michael Spratt, Assistant Director of the Division of Investment Management at the Securities and Exchange Commission (SEC), and Jim Wigand, former Director of the Office of Complex Financial Institutions at the Federal Deposit Insurance Corporation (FDIC) with warm applause. Mr. Spratt offered a detailed description of the SEC’s role in Federal Securities Law with specific examples such as the 1933 Act, Dodd-Frank, etc. Mr. Wigand portrayed a big picture view of the role of the FDIC, and benefits that the FDIC has brought to depositors.

Guest Bloggers: Yali Ning, Huilin Liu, Xinong (Roy) He (GMF 2015)

This is the fourth in a series of 10 blogs chronicling the experiences of 31 Global Master of Finance (GMF) dual degree students during their two week long immersion course in Washington, DC and New York. Each blog will be written by a small subset of students during their experience.