Comments: As an RIA and CFP Professional with over two decades experience I can tell you that retail investors are far more experienced, savvy and informed than when I started in the business. Teenagers invest through their phones, something I never dreamed of at their age. The disclosure and consumer warnings required by leveraged products providers more than addresses the risks involved in trading their products. In fact, in most cases it scares people away from a tool that is otherwise useful in certain circumstances for protecting wealth without exiting positions and creating negative tax consequences. But the risks of holding higher leverage for longer periods does warrant the disclosure. But that is really all it warrants. The global financial system is increasingly fragile requiring the Federal Reserve to backstop not just US Banks but global banks and multinationals. Now more than ever consumers and advisors need access to unique tools to address the systemic risks that exists from an interconnected global financial network subject to more frequent and sudden bouts of illiquidity. This is not the 1950s financial landscape and today's savvy traders need creative tools to combat the systemic risks created by global interconnectedness and overfinancialisation. Please do not further limit access to these unique and useful tools. Today's retail trader is smarter than ever and can quickly discern the appropriate application for such tools based on practice and the currently legislated disclosures.
Patrick Dailey Comment On Regulatory Notice 22-08
Comments: As an RIA and CFP Professional with over two decades experience I can tell you that retail investors are far more experienced, savvy and informed than when I started in the business. Teenagers invest through their phones, something I never dreamed of at their age. The disclosure and consumer warnings required by leveraged products providers more than addresses the risks involved in trading their products. In fact, in most cases it scares people away from a tool that is otherwise useful in certain circumstances for protecting wealth without exiting positions and creating negative tax consequences. But the risks of holding higher leverage for longer periods does warrant the disclosure. But that is really all it warrants. The global financial system is increasingly fragile requiring the Federal Reserve to backstop not just US Banks but global banks and multinationals. Now more than ever consumers and advisors need access to unique tools to address the systemic risks that exists from an interconnected global financial network subject to more frequent and sudden bouts of illiquidity. This is not the 1950s financial landscape and today's savvy traders need creative tools to combat the systemic risks created by global interconnectedness and overfinancialisation. Please do not further limit access to these unique and useful tools. Today's retail trader is smarter than ever and can quickly discern the appropriate application for such tools based on practice and the currently legislated disclosures.