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Dorothy Geberl Comment On Regulatory Notice 22-08

Dorothy Geberl
N/A

This regulation would be disastrous to retail investors who seek to invest in inverse funds to shield themselves from adverse market consequences, for example, by purchasing an inverse index fund as a part of their portfolio when market conditions indicate a market crash could occur, hedging against that outcome. These funds being regulated to this extent will push retail investors towards derivatives to achieve the same results, which are in most cases riskier than inverse ETFs.