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Logan Comment On Regulatory Notice 22-08

Logan
N/A

Information about a product you invest in is incredibly important, and I think ensuring brokerages are properly informing retail investors about the risks of the product they are investing in would benefit everyone involved. However, I find the proposed regulations of forcing those holding leveraged products to sell at the end of every day and limiting capping profits/losses of a leveraged product are massive missteps. There are already ways for investors to cap potential losses (using options) and to have these guard-railed in such a way is disrespectful to the many investors who already understand how the various leveraged products work. As for forcing holders to sell at the end of every trading day, it also just seems like a silly way to punish investors who understand what they are trading - not to mention the silly retail investors you are targeting would still be able to re-buy every day anyway. What is more important is ensuring they understand in the first place what they are investing in, and if they do, letting them invest according to their will. I think many of the proposed measures are bunk, but especially the ones limiting the amount of time a product is to be held and limiting potential profits/losses in a given year (does that mean the product would just close until Jan 1 comes around again?).