I am currently an investor in leveraged and inverse instruments -- these are an important part of my investment strategy. Yes they require some extra work to understand, but they have proven to be a successful investment strategy for me. I do not think you should be regulating access to these vehicles -- the more you restrict access to vehicles like this to "priviledged" individuals, the more unbalanced the financial markets become. Force the right disclosures (which you already do) and then let the market function the way it is supposed to. Restricting access to investments makes the financial markets less democratic and less a resource for all individuals. These investments should not be restricted
Paul Smith Comment On Regulatory Notice 22-08
I am currently an investor in leveraged and inverse instruments -- these are an important part of my investment strategy. Yes they require some extra work to understand, but they have proven to be a successful investment strategy for me. I do not think you should be regulating access to these vehicles -- the more you restrict access to vehicles like this to "priviledged" individuals, the more unbalanced the financial markets become. Force the right disclosures (which you already do) and then let the market function the way it is supposed to. Restricting access to investments makes the financial markets less democratic and less a resource for all individuals. These investments should not be restricted