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Athanassios Diplas Comment On Regulatory Notice 22-08

Athanassios Diplas
N/A

- Individual investors should be able to make their own risk decisions - Investors can obtain leverage through margin. The amount of leverage can be adjusted by the investor. Leveraged funds are different in that the leverage is predetermined and formulaic. The risks are well known at this point and appropriately explained in the relevant prospectus. Most individual investors can gain leverage through margin without a reference to the same risk factors. - Investor education is important, rather than restrictions based on an arbitrary net worth limit. Someone could inherit a billion dollars and still not know how to spell leverage. - Investment restrictions will simply move liquidity and risk from one instrument to the other but will have no effect in helping investors.