It is NOT FINRA's obligation to protect investors from themselves. It is the obligation of FINRA to oversee registered firms and registered representatives. If FINRA wishes to take action, it should not be burdensome to the individual investor. FINRA appears to be targeting the informed self-directed investor who understands the risks associated with leveraged and inverse funds, which are CLEARLY events that go beyond FINRA's scope of authority. Placing unnecessary, superfluous and burdensome actions on the individual investor does nothing to protect the investor as the back of their business cards say - it only caps the self-directed investor with the ruse of protecting the woefully ignorant. To add, the genesis of this was terribly misguided and those responsible should not be lauded, rather that they be treated with a lens of not understanding of their constituents. If the SEC decides that this product is unjust, they would have decreed so. The SEC has passed all these products, that means they are legit. The self-promoting attorney that came up with this rule should receive NO bonus, then all is just. Shame on you, FINRA.
Anonymous Comment On Regulatory Notice 22-08
It is NOT FINRA's obligation to protect investors from themselves. It is the obligation of FINRA to oversee registered firms and registered representatives. If FINRA wishes to take action, it should not be burdensome to the individual investor. FINRA appears to be targeting the informed self-directed investor who understands the risks associated with leveraged and inverse funds, which are CLEARLY events that go beyond FINRA's scope of authority. Placing unnecessary, superfluous and burdensome actions on the individual investor does nothing to protect the investor as the back of their business cards say - it only caps the self-directed investor with the ruse of protecting the woefully ignorant. To add, the genesis of this was terribly misguided and those responsible should not be lauded, rather that they be treated with a lens of not understanding of their constituents. If the SEC decides that this product is unjust, they would have decreed so. The SEC has passed all these products, that means they are legit. The self-promoting attorney that came up with this rule should receive NO bonus, then all is just. Shame on you, FINRA.