I strongly oppose the proposed regulation of complex products that might include leveraged and inverse funds. The assumption that retail investors do not know what they are doing is flawed. The retail investor should be able to choose investments that are right for them and not the regulators. The investor shouldn't have to go through any course before getting an approval to trade in public securities - like leveraged and inverse funds. We are perfectly capable of understanding these funds and the risks associated with them. The availability of complex products and options to retail investors is a boon as that helps them balance risk and reward more effectively.
Nikhil Hegde Comment On Regulatory Notice 22-08
I strongly oppose the proposed regulation of complex products that might include leveraged and inverse funds. The assumption that retail investors do not know what they are doing is flawed. The retail investor should be able to choose investments that are right for them and not the regulators. The investor shouldn't have to go through any course before getting an approval to trade in public securities - like leveraged and inverse funds. We are perfectly capable of understanding these funds and the risks associated with them. The availability of complex products and options to retail investors is a boon as that helps them balance risk and reward more effectively.