While I understand the need for, and value of, some regulations to insure that unsophisticated investors do not utilize inverse or leveraged funds to their detriment, I do not believe those regulations should be unduly restrictive. Specifically, I do not support required testing or mandatory cooling off periods. I already accept the requirement for demonstrating appropriate net worth and getting approval from my broker. I believe these precautions are sufficient to protect against unwarranted and inappropriate usage of such funds. I use inverse funds as a means of hedging my exposure to equity markets and they do not represent a significant part of my total portfolio. I understand the risks involved and how the funds work. I think it should be my responsibility to educate myself before using such funds and I don't believe I should be told I must do so.
John Campbell Comment On Regulatory Notice 22-08
While I understand the need for, and value of, some regulations to insure that unsophisticated investors do not utilize inverse or leveraged funds to their detriment, I do not believe those regulations should be unduly restrictive. Specifically, I do not support required testing or mandatory cooling off periods. I already accept the requirement for demonstrating appropriate net worth and getting approval from my broker. I believe these precautions are sufficient to protect against unwarranted and inappropriate usage of such funds. I use inverse funds as a means of hedging my exposure to equity markets and they do not represent a significant part of my total portfolio. I understand the risks involved and how the funds work. I think it should be my responsibility to educate myself before using such funds and I don't believe I should be told I must do so.