Christo Angelov Comment On Regulatory Notice 22-08
Christo Angelov
N/A
I believe that the proposed regulation in its effort to protect investors way oversteps the line between being helpful by ensuring that investors can make informed choices and being harmful by assuming it knows best what those choices should be and who should be allowed to make such choices and who should be banned from making them. Leveraged funds have been a part of my portfolio, including my retirement accounts, since 2015. I believe they are on average less risky than investments in many individual companies. If you are banning them for most investors, you might as well ban the investment in individual companies for most investors; or only allow investments in "large value" companies; or enforce limits on portfolio allocations deemed age-appropriate. I am in favor of what some brokers already do: they require filling in a form before investors can access leveraged funds; popping up a message explaining that these funds are not for all investors and not meant for long-term investing; include some of the language present in the fund prospectus where it says it is possible to lose the entire investment in one day. It would also be nice to include information such as historical biggest drop in a day and biggest decline.
Christo Angelov Comment On Regulatory Notice 22-08
I believe that the proposed regulation in its effort to protect investors way oversteps the line between being helpful by ensuring that investors can make informed choices and being harmful by assuming it knows best what those choices should be and who should be allowed to make such choices and who should be banned from making them. Leveraged funds have been a part of my portfolio, including my retirement accounts, since 2015. I believe they are on average less risky than investments in many individual companies. If you are banning them for most investors, you might as well ban the investment in individual companies for most investors; or only allow investments in "large value" companies; or enforce limits on portfolio allocations deemed age-appropriate. I am in favor of what some brokers already do: they require filling in a form before investors can access leveraged funds; popping up a message explaining that these funds are not for all investors and not meant for long-term investing; include some of the language present in the fund prospectus where it says it is possible to lose the entire investment in one day. It would also be nice to include information such as historical biggest drop in a day and biggest decline.