There are already several messages and warnings that brokerages give before allowing individual investors to invest in complex funds, specifically leveraged funds. It's a really bad idea to restrict these purchases. All this will do is incentivize people to take higher risk approaches at leveraged investing which primarily involves margin purchases or investing on debt. This could result in far higher losses than people would normally incur and would have far worse long-term implications on the investing markets. the average investor does not even know about leveraged funds, and to Target the ones that do who use this as a lower risk approach than investing on margin, he's only going to hurt. Please reconsider this because I think the side effects are going to be far worse than the problem that you're trying to solve with this particular legislation.
Jeremy Fisher Comment On Regulatory Notice 22-08
There are already several messages and warnings that brokerages give before allowing individual investors to invest in complex funds, specifically leveraged funds. It's a really bad idea to restrict these purchases. All this will do is incentivize people to take higher risk approaches at leveraged investing which primarily involves margin purchases or investing on debt. This could result in far higher losses than people would normally incur and would have far worse long-term implications on the investing markets. the average investor does not even know about leveraged funds, and to Target the ones that do who use this as a lower risk approach than investing on margin, he's only going to hurt. Please reconsider this because I think the side effects are going to be far worse than the problem that you're trying to solve with this particular legislation.