I don't believe that it should be necessary to have any sort of 'test' or other requirements to invest in leveraged funds. While there are risks, potentially substantial, the bulk of brokers require today that you sign a statement understanding the risks of leveraged investing.
Perhaps the compromise should NOT be to move leveraged investing to non-public forms, but to require all brokers that allow trading them, to have users sign and acknowledge the risks before being allowed to invest in them. This would bring things to parity across all brokers and still allow people to invest in them if they choose.
Justice London Comment On Regulatory Notice 22-08
I don't believe that it should be necessary to have any sort of 'test' or other requirements to invest in leveraged funds. While there are risks, potentially substantial, the bulk of brokers require today that you sign a statement understanding the risks of leveraged investing.
Perhaps the compromise should NOT be to move leveraged investing to non-public forms, but to require all brokers that allow trading them, to have users sign and acknowledge the risks before being allowed to invest in them. This would bring things to parity across all brokers and still allow people to invest in them if they choose.