I lodge my comment on FINRA Regulatory Notice #22-08 opposing the proposed action by FINRA. Investors have legitimate risk management reasons for investing in leveraged and inverse funds as part of their retirement or other plans. Personally, I use these funds to mitigate the risk in my bond portfolios to interest rate increases that negatively impact these fixed income valuations. I understand fully that they work in the reverse when interest rates drop, but it is my responsibility to understand these risks and act accordingly. This responsibility certainly does not fall on the government through its enforcement mechanisms. I should not have to jump through the hoops proposed, such as passing a test or attesting to have read certain documents ahead of making such investments. Please rescind this proposed regulation.
Michael Hachey Comment On Regulatory Notice 22-08
I lodge my comment on FINRA Regulatory Notice #22-08 opposing the proposed action by FINRA. Investors have legitimate risk management reasons for investing in leveraged and inverse funds as part of their retirement or other plans. Personally, I use these funds to mitigate the risk in my bond portfolios to interest rate increases that negatively impact these fixed income valuations. I understand fully that they work in the reverse when interest rates drop, but it is my responsibility to understand these risks and act accordingly. This responsibility certainly does not fall on the government through its enforcement mechanisms. I should not have to jump through the hoops proposed, such as passing a test or attesting to have read certain documents ahead of making such investments. Please rescind this proposed regulation.