The tools of an investor to offset risk through the use of some of the inverse or short funds could substantially impact their ability to mitigate losses. Investors need to understand the risks involved in EVERY product, including publicly traded stocks. ALL investments carry risk, every single one. The Boards ability to define who is knowledgeable or not is overstepping their scope of regulation. YOU DO NOT have the authority to regulate an individual's tolerance for risk. An individual can sell if they are not willing to accept a loss, but by limiting our ability to mitigate a loss through the use of a leveraged fund, YOU are handicapping an informed investor. Investor knowledge or investor risk tolerance CAN NOT be regulated.
Peter Nath Comment On Regulatory Notice 22-08
The tools of an investor to offset risk through the use of some of the inverse or short funds could substantially impact their ability to mitigate losses. Investors need to understand the risks involved in EVERY product, including publicly traded stocks. ALL investments carry risk, every single one. The Boards ability to define who is knowledgeable or not is overstepping their scope of regulation. YOU DO NOT have the authority to regulate an individual's tolerance for risk. An individual can sell if they are not willing to accept a loss, but by limiting our ability to mitigate a loss through the use of a leveraged fund, YOU are handicapping an informed investor. Investor knowledge or investor risk tolerance CAN NOT be regulated.