I support greater regulation and restrictions on retail investment in complexed investment vehicles. Whether it's FINRA, SEC or some other SRO, I think it would be helpful if retail investors were required to undergo some sort of certification or training process to verify their understanding of the risk involved with trading risky assets.
If I had to choose which instruments would require certification, I'd start with any product where the investor stands to lose more than their initial investment, but think it would be helpful to include small cap stocks (particularly otcbb, pink and grey sheet stocks), illiquid stocks, and inversed or leveraged ETFs.
Jason Young Comment On Regulatory Notice 22-08
I support greater regulation and restrictions on retail investment in complexed investment vehicles. Whether it's FINRA, SEC or some other SRO, I think it would be helpful if retail investors were required to undergo some sort of certification or training process to verify their understanding of the risk involved with trading risky assets.
If I had to choose which instruments would require certification, I'd start with any product where the investor stands to lose more than their initial investment, but think it would be helpful to include small cap stocks (particularly otcbb, pink and grey sheet stocks), illiquid stocks, and inversed or leveraged ETFs.