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Peter Lloyd Comment On Regulatory Notice 22-08

Peter Lloyd
N/A

Principally I use inverse and leveraged funds provide a way to hedge against market downturn or increase the benefits from market movement in one direction. They are not complex... if one reads about how they work and their prospectus they are straight forward to manage. A microwave is complex until you read the instructions. Understanding the risk/reward of these products is not complicated unless one does not know how to read. There may be people who don't bother understanding what they are doing but why should everyone else have to suffer?
We already have to sign agreements with our brokers indicating we understand what we are trading. Restricting them further is just another way for FINRA to pretend it cares about the individual investor but really is just making it more and more difficult for individual investors to have access to products the rest of the market benefits from.
Perhaps more focus should be placed on how corporations and hedge funds are manipulating the market rather than if an individual investor can buy a product. Again understanding the risks/rewards of these products takes a little bit of reading. If FINRA does not think the investor can read perhaps all stock transactions should be banned for the individual investor and he should never be allowed to trade. Perhaps the public should have to give all their savings to companies so they can manage it oh so well. This idea to limit access is absolutely ridiculous and completely lazy and does not address any of the issues inherent with modern trading.