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Keith Addison Comment On Regulatory Notice 22-08

Keith Addison
N/A

Comments:
Leveraged and Inverse funds provide me with a unique capability to both hedge market risks and provide a balanced portfolio. As an individual investor, I understand the risks associated with these and other products.

The market is currently stacked against a small investor because the entry is regulated by experience and wealth (not behavior). For example, the day trade rule takes a small account investor and takes away trading flexibility that they get with a bigger account. Leveraged funds (properly used) help offset this.

An investor who takes on additional risks from leveraged products because they did not take the provided training (or ignore what they learn) does not warrant additional regulation or restrictions. They are learning the hard way which is how we all learned to walk.

I'm opposed to putting further restrictions on L&I funds because of this.

The industry provides training information and risk statements that may be ignored by some individuals. This doesn't require more restrictions on the individuals, particularly individual investors.

Thank you for taking my input.