Skip to main content

Chris Grande Comment On Regulatory Notice 22-08

Chris Grande
N/A

As is often the case in government policy, the motivations of this seem good. However, limiting investments until someone has a liquid net worth of 1M or other limit has proven suboptimal. These specialized products are risk management tools - perhaps used to hedge a portfolio without selling and realizing gains, or taking advantage of markets that would otherwise be unavailable without a large futures account.

I am ok with requiring disclosures - not tests, net worth requirements or trade limitations - such as we do with options, which can be more volatile than the funds in question. But that's it. it's time to let people be adults and if they read a disclosure, and attest to it, then it's their responsibility. The best lesson I e ver learned was losing $1,000 of my $1,500 balance in an account on a stock I "liked" but refused to respect risk on. Tuition well spent.