Michael Burbach Discusses Securities and Financial Regulation

Michael Burbach '05, Second Vice President and Assistant General Counsel at Security Benefit Corporation, was hosted by the Business and Transactional Law Center on February 21, 2019. During his lunchtime presentation, "Introduction to Securities and Financial Regulation," Burbach explained how securities businesses work, with a focus on different kinds of entities and the regulations that apply to them.

Burbach walked students through the various clients they might encounter working as securities lawyers, and the different priorities and regulatory requirements imposed on each type of client. He focused in particular on issuers, funds, purchasers of securities, and intermediaries.

Burbach explained the role the Securities and Exchange Commission (SEC) plays in the buying and selling of securities, as well as the key differences between public and private securities. He answered questions regarding the impact of financial regulations and the burdens they place on purchasers and issuers. Burbach went on to elaborate on the role played by securities brokers and the regulations that attorneys representing those types of clients should be aware of. This discussion led to an exploration of the circumstances that encourage a fund to be a private fund rather than a public mutual fund, which is registered with the SEC. In his explanation of the factors that influence that choice, Burbach walked through the different types of investors and how their net worth and business sophistication can alter the requirements of a fund.

Burbach elaborated on the differences between state securities regulations and federal securities regulations, and the impact of their somewhat overlapping jurisdictions. He explained the increase in federal securities regulations over the past decade, and commented on the sophistication of the securities system and the evolution of the business. Burbach pointed out that, although state securities regulations still play an important role in today's corporate governance system, the federal securities regulations may apply to allow an international business while the state securities regulations do not have the same reach.

Burbach discussed the difficulties of practicing securities law and encouraged students interested in the practice area to reach out to regulators to discuss the nuances of new endeavors. While there are many securities laws and regulations, interpretations are not always clear, and one of the interesting parts of a securities law practice is the need to delve into all possible outcomes.

Washburn Law thanks Michael Burbach for coming to campus and generously sharing his time and expertise with our students.