There are a number of "complex" investment instruments available to the public which enhance ones ability to manage investment risk (which has been very beneficial today with the major indexes down 15-20% for the year). These tools are advantageous and are no more difficult to understand or risky then other investment instruments (i.e. options, industry and specialized ETF's, crypto currencies, high yield bonds, small cap growth stocks, etc.). Placing additional burdens on investors to utilize leveraged and inverse funds to me seems misguided and aberrant. Investors lost more then $200 Billion dollars in the past six months in MEME stocks and more than a trillion dollars in tech growth stocks. Are regulators going to require investors to prove their understanding on all of these investment options strategies prior to investing? The vast of investors understand how to apply these investments options to maximize return and effectively manage risk. Most investors also recognize that these investment tools need to be used in a limited way to help improve returns, minimize losses and manage risks. Any regulation of leveraged and reverse ETF's is unnecessary, unwarranted and I believe will result in greater harm to the average investor. I STRONGLY recommend against any further regulation or requirement for investors to utilize these essential investment tools.
Brian Orourke Comment On Regulatory Notice 22-08
There are a number of "complex" investment instruments available to the public which enhance ones ability to manage investment risk (which has been very beneficial today with the major indexes down 15-20% for the year). These tools are advantageous and are no more difficult to understand or risky then other investment instruments (i.e. options, industry and specialized ETF's, crypto currencies, high yield bonds, small cap growth stocks, etc.). Placing additional burdens on investors to utilize leveraged and inverse funds to me seems misguided and aberrant. Investors lost more then $200 Billion dollars in the past six months in MEME stocks and more than a trillion dollars in tech growth stocks. Are regulators going to require investors to prove their understanding on all of these investment options strategies prior to investing? The vast of investors understand how to apply these investments options to maximize return and effectively manage risk. Most investors also recognize that these investment tools need to be used in a limited way to help improve returns, minimize losses and manage risks. Any regulation of leveraged and reverse ETF's is unnecessary, unwarranted and I believe will result in greater harm to the average investor. I STRONGLY recommend against any further regulation or requirement for investors to utilize these essential investment tools.