My background is a buy-side equity trader for 28 years. There are complexity levels of investment products. Screening should be increased as the complexity levels increase, such as the Option trading approval levels are done. There are some newer products like inverse leveraged, and multiplied leveraged ETFs that normal investors do not understand. Specifically the use of futures and options and the declining time value of the instruments. This comes into play during a roll of the instrument to the next expiry. No wonder firms like Vanguard already halted new purchases of these faulty products.
Anonymous Comment On Regulatory Notice 22-08
My background is a buy-side equity trader for 28 years. There are complexity levels of investment products. Screening should be increased as the complexity levels increase, such as the Option trading approval levels are done. There are some newer products like inverse leveraged, and multiplied leveraged ETFs that normal investors do not understand. Specifically the use of futures and options and the declining time value of the instruments. This comes into play during a roll of the instrument to the next expiry. No wonder firms like Vanguard already halted new purchases of these faulty products.