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John Torriero Comment On Regulatory Notice 22-08

John Torriero
N/A

Hi

I dont agree that FINRA should impose additional regulations for leveraged and inverse funds. Leveraged funds can be profitable in both bill and bear markets. Inverse investments protect investors from market downturns. They are an easy way for investors to lock in gains and/or reduce their exposure to market gyrations.

I am sure I personally can meet these regulations. However they will take up my time which is valuable. If youd add up all the time investors will have to spend meeting these new regulations you would realize that investors time is better spent researching stocks or increasing their net worth in other ways. I especially dont like cooling off periods which will restrict liquidity. Securities should always trade freely so that individual investors have the same access as institutional investors.

These regulations seem designed to artificially prop up the market. If enacted, they will distort the value of the market and other dollar denominated investments. Inevitably, this distortion will be corrected by a crash which will hurt investors. I dont know what purpose these new regulations will serve. What problem is FINRA trying to solve?