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Hye Kosover Comment On Regulatory Notice 22-08

Hye Kosover
N/A

I strongly believe regulators should highly regulate the availability of these investment products to the general public. Regulators most certainly should require investors meet particular investment knowledge standards before buying any leveraged ETN or ETF. As an owner of both products with more than 25 years of investment experience, these products are extremely complex and have complicated tax ramifications. The original offering prospectus offen changes terms, exclusively benefiting the Issuer. The general public is ill-prepared to understand the legal termiminology and risks. By example, see the recent sale of more than half-billion of unregistered ETN's by Barclays iPath; Symbol: VXX. Or, VelocityShares ETN: TVIX, resulting in delisting and millions lost by unknowledged investors. Leveraged and inverse funds are fundamentally sophisticated investment products that require far greater understanding of the implications associated with owning and selling the product that rise to a higher level of expertise than is currently required.