I'm concerned about the proposal of "Regulatory Notice 22-08". Indeed, it might be a must for regulators to take certain action on new financial products, but I don't think this restriction can solve the problem. The reason is listed below:
1.What serves as complex product is too ambiguous, that means, investors can’t figure out what investment tools they can use.
2.Investment decision should be made by individuals, not regulators. If investors can tolerant such risk, there’s no need to make such restrictions.
3.Leverage or gearing have their drawback; however, this gives investors to enhance their investment return. What regulators should do is to make better regulation, not restricting them.
4.If investors find they may not purchase certain financial tool, it might reduce the willingness of investing in America, and this might be harmful for US economy.
Based on the reasons above, I don't agree the proposal of "Regulatory Notice 22-08". Finra should educate investors, not limiting investors.
Mark Liu Comment On Regulatory Notice 22-08
Dear Sirs,
I'm concerned about the proposal of "Regulatory Notice 22-08". Indeed, it might be a must for regulators to take certain action on new financial products, but I don't think this restriction can solve the problem. The reason is listed below:
1.What serves as complex product is too ambiguous, that means, investors can’t figure out what investment tools they can use.
2.Investment decision should be made by individuals, not regulators. If investors can tolerant such risk, there’s no need to make such restrictions.
3.Leverage or gearing have their drawback; however, this gives investors to enhance their investment return. What regulators should do is to make better regulation, not restricting them.
4.If investors find they may not purchase certain financial tool, it might reduce the willingness of investing in America, and this might be harmful for US economy.
Based on the reasons above, I don't agree the proposal of "Regulatory Notice 22-08". Finra should educate investors, not limiting investors.
Best Regards,
Mark Liu