It is important for FINRA to adhere with principles-based disclosure regime when promoting rules and regulations. Prohibit retail investors to participate in complex products and options not only violate with the regime, but also reduce the chance for retail investors to manage their risks by using complex products and options. Please noted that majority of complex products, especially exchange-traded products, WOULD NOT lose more money than original invested (unless buying on margin).
On the other hand, it is necessary to regulate financial professionals for recommending complex products and options to unsuitable clients. Financial professionals have fiduciary duties to their clients, they should act in the best interest of their clients.
Ivy So Comment On Regulatory Notice 22-08
It is important for FINRA to adhere with principles-based disclosure regime when promoting rules and regulations. Prohibit retail investors to participate in complex products and options not only violate with the regime, but also reduce the chance for retail investors to manage their risks by using complex products and options. Please noted that majority of complex products, especially exchange-traded products, WOULD NOT lose more money than original invested (unless buying on margin).
On the other hand, it is necessary to regulate financial professionals for recommending complex products and options to unsuitable clients. Financial professionals have fiduciary duties to their clients, they should act in the best interest of their clients.