Episode 68: Gautam Ganeshan, KPMG

Today I’m joined by Gautam Ganeshan from KPMG to talk all about digital asset fund audits!

Key Points From This Episode:

• Are crypto assets categorized in the same Level 1, Level 2, Level 3 framework as traditional assets?
• What are examples of each Level in the crypto world?
• How does the scope of a crypto fund audit compare to a tradfi fund audit?
• What are the unique challenges involved in auditing a fund with a digital asset strategy?
• Valuation and existence of assets – what’s different about digital assets?
• How should a new digital asset fund manager choose the right auditor?
• What can I proactively do to make the process efficient?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Gautam Ganeshan - https://www.linkedin.com/in/gautam-ganeshan-cpa-ca-cfa-4696931a/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

KPMG - https://kpmg.com/ky/en/home.html

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 67: SEC Commissioner Hester Peirce

I am honored to welcome SEC Commissioner Hester Peirce – Crypto Mom herself – to the Tokens of Wisdom Studio today to talk to us about crypto, regulation, zombies (not really) and parenthood. You don’t want to miss this one.

Key Points From This Episode:

• How have the SEC’s vibes shifted so quickly?
• How can we move up the regulatory ladder toward formal rulemaking?
• What should we do about the custody rule?
• What is the best way for industry participants to advocate for new rulemaking?
• The many aspects of investor protection.
• Creating pathways to regulatory compliance.
• How Commissioner Peirce feels about the title, “crypto mom”.

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Hester Peirce - https://www.sec.gov/about/sec-commissioners/hester-m-peirce

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 66: Phil Graham, Harneys

When I set out to do this show, my goal was to arm aspiring fund managers with the information they need to launch and operate a fund.

In the legal realm, I happen to possess a lot of that information from my day job, but there’s so much more that goes into launching and operating a fund. And wise though I may be, my area of expertise doesn’t cover it all. So I’m going to bring in some friends to share their wisdom in various other aspects of fund management.

I am honored to have Phil Graham, Global Head of Investment Funds and Digital Assets at Harneys on the show today to talk to us about BVI funds law.

Key Points From This Episode:

• Why should I choose BVI over Cayman for my offshore fund?
• Does my fund always need to register with the local regulator?
• What does the registration process cost/involve?
• Brief rundown of the local regulatory requirements for a BVI fund.
• How should I choose the right offshore counsel?
• Creating pathways to regulatory compliance.
• What’s the smartest thing a new fund manager can do?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Phil Graham - https://www.linkedin.com/in/philip-graham-865a4011/

Harneys - https://www.harneys.com/

Piano Lessons Podcast - https://www.harneys.com/podcasts/piano-lessons/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 65: The Zombie Episode (Three Rungs of the Regulatory Ladder)

For as long as I’ve worked in crypto, the industry has been plagued by the dreaded REGULATORY UNCERTAINTY. That is, apparently, until the last couple months. All of a sudden I’m seeing clients putting stuff like “Regulatory Clarity Achieved!” in marketing decks and celebrating the demise of uncertainty’s reign. Maybe pump the brakes a bit. I don’t think we’re quite there yet.

The new SEC has certainly moved quickly to dismantle the anti-crypto reputation its predecessors cultivated, but it takes more than a vibe shift to achieve regulatory clarity. In today’s episode, I analogize regulatory uncertainty to a zombie plague (obviously) and explain how regulation comes in three levels – kinda like a ladder leading you to salvation from the undead hordes surrounding you.

I promise it’ll make sense if you listen. Or it won’t.

Key Points From This Episode:

• Explaining the three rungs of the regulatory ladder, from the lowest to the highest: vibes; formal rulemaking; and legislation.
• What rung of the ladder are we on now?
• What kinds of zombies could still get us at this rung?
• How can we get higher up that ladder?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 64: Sharing the Wisdom (Colleen Fay)

When I set out to do this show, my goal was to arm aspiring fund managers with the information they need to launch and operate a fund.

In the legal realm, I happen to possess a lot of that information from my day job, but there’s so much more that goes into launching and operating a fund. And wise though I may be, my area of expertise doesn’t cover it all. So I’m going to bring in some friends to share their wisdom in various other aspects of fund management.

I am honored to have Colleen Fay from Withum on the show today to talk to us about fund-related tax issues!

Key Points From This Episode:

• What is pass through taxation?
• How does it avoid double tax?
• What issues might it cause for non-US or tax-exempt US investors?
• How offshore blockers help alleviate those issues.
• Clarifying scary acronyms: UBTI and ECI.
• Management company tax structuring considerations.
• What’s the smartest thing a new fund manager can do?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Colleen Fay - https://www.linkedin.com/in/colleen-d-fay/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Withum - https://www.withum.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 63: Hedge Fund Offering Terms, Part 2: Liquidity

Today is the second in a series of Tokens of Wisdom episodes walking through the main offering terms for an open-ended fund, aka a hedge fund.

One of the first things I do with new fund clients is take them through a fund questionnaire to determine the offering terms for their new fund. This is usually a one hour conversation, at the end of which I have most of what I need to draft the fund’s offering documents. Since I know ToW listeners like it short and sweet, I’m going to break this up into a handful of different episodes.

Today’s episode discusses liquidity terms.

Key Points From This Episode:

• How do hedge fund managers think about liquidity provisions?
• What’s the tension between manager and investor?
• Common liquidity restrictions/mechanisms.
• What variables are relevant for each mechanism?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 62: Sharing the Wisdom (Salman Ali)

When I set out to do this show, my goal was to arm aspiring fund managers with the information they need to launch and operate a fund.

In the legal realm, I happen to possess a lot of that information from my day job, but there’s so much more that goes into launching and operating a fund. And wise though I may be, my area of expertise doesn’t cover it all. So I’m going to bring in some friends to share their wisdom in various other aspects of fund management.

I am honored to have Salman Ali from CBIZ on the show today to tell us all about fund audits!

Key Points From This Episode:

• What does the fund audit process entail?
• What are level 1, 2, and 3 assets? Why does it matter for an audit?
• How do auditors charge for their services?
• What does auditor independence mean?
• What kind of info does the auditor need to complete its work?
• How do auditors charge for their services?
• How to choose the right auditor for your fund?
• What’s the smartest thing a new fund manager can do?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Salman Ali - https://www.linkedin.com/in/salmanali310/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

CBIZ - https://www.cbiz.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 61: Hedge Fund Offering Terms, Part 1: Compensation

Today is the first in a series of Tokens of Wisdom episodes walking through the main offering terms for an open-ended fund, aka a hedge fund.

One of the first things I do with new fund clients is take them through a fund questionnaire to determine the offering terms for their new fund. This is usually a one hour conversation, at the end of which I have most of what I need to draft the fund’s offering documents. Since I know ToW listeners like it short and sweet, I’m going to break this up into a handful of different episodes.

Today’s episode discusses compensation terms.

Key Points From This Episode:

• How are fund managers typically compensated?
• What’s a management fee? What’s a performance allocation?
• What variables are relevant for each?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com