I am writing regarding pending regulation(s) that are or may be under consideration that may restrict, limit or eliminate the ability of individual investors to buy and sell inverse and leveraged mutual/exchange traded funds. I am writing to voice my opinion on this matter.
I currently utilize inverse funds to diversify my portfolio. Inverse (and sometimes leveraged) funds play an extremely important role to balance my overall portfolio given specific market conditions and I oppose any regulation that would limit or eliminate the ability of individual investors such as myself to utilize these tools as a means of meeting individual goals and objectives. Imposing any restrictions on the use of inverse or leveraged funds by individual investors such as myself, will severely limit the ability to diversify holdings in often changing market conditions and could likely have a net negative effect on the overall performance and rates of return. By imposing such restrictions, it would cause investors to consider investments that may assume greater risk by being poorly diversified or having greater cash positions that may affect performance.
Additionally, I oppose any restriction(s) requiring individual investors to go through any special process(es) in which to utilize leveraged or inverse funds as part of their portfolio.
It is my opinion that the risk of using tools such as these are the responsibility of the individual choosing to use them as part of their overall investment objective. It is upon the individual to be educated on the use of these funds and to make an appropriate risk-benefit analysis if inverse or leveraged funds are appropriate tools in meeting their individual goals and objectives. By limiting access or restricting use is far over-reaching and should not be the goal of regulators. Thank you.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Kenneth Long Comment On Regulatory Notice 22-08
To whom it may concern (FINRA Regulation):
I am writing regarding pending regulation(s) that are or may be under consideration that may restrict, limit or eliminate the ability of individual investors to buy and sell inverse and leveraged mutual/exchange traded funds. I am writing to voice my opinion on this matter.
I currently utilize inverse funds to diversify my portfolio. Inverse (and sometimes leveraged) funds play an extremely important role to balance my overall portfolio given specific market conditions and I oppose any regulation that would limit or eliminate the ability of individual investors such as myself to utilize these tools as a means of meeting individual goals and objectives. Imposing any restrictions on the use of inverse or leveraged funds by individual investors such as myself, will severely limit the ability to diversify holdings in often changing market conditions and could likely have a net negative effect on the overall performance and rates of return. By imposing such restrictions, it would cause investors to consider investments that may assume greater risk by being poorly diversified or having greater cash positions that may affect performance.
Additionally, I oppose any restriction(s) requiring individual investors to go through any special process(es) in which to utilize leveraged or inverse funds as part of their portfolio.
It is my opinion that the risk of using tools such as these are the responsibility of the individual choosing to use them as part of their overall investment objective. It is upon the individual to be educated on the use of these funds and to make an appropriate risk-benefit analysis if inverse or leveraged funds are appropriate tools in meeting their individual goals and objectives. By limiting access or restricting use is far over-reaching and should not be the goal of regulators. Thank you.