As a long time investor the idea that I can not understand the risks of complex and leveraged funds is ridiculous. I regularly use these type assets to hedge against things like the current rise in interest rates and do not require the government to hold my hand while I use them. The market is not a FDIC insured bank account and investors are regularly informed that they can lose money and if they are using leveraged funds that they can lose it in a hurry. Current broker disclosures when beginning purchase of these types of assets is sufficient. Once warned, adding further tests and restrictions is redundant and will reduce my ability to use these assets when I decide I need them given a current investment environment.
Dirk Jungquist Comment On Regulatory Notice 22-08
As a long time investor the idea that I can not understand the risks of complex and leveraged funds is ridiculous. I regularly use these type assets to hedge against things like the current rise in interest rates and do not require the government to hold my hand while I use them. The market is not a FDIC insured bank account and investors are regularly informed that they can lose money and if they are using leveraged funds that they can lose it in a hurry. Current broker disclosures when beginning purchase of these types of assets is sufficient. Once warned, adding further tests and restrictions is redundant and will reduce my ability to use these assets when I decide I need them given a current investment environment.