It has been a matter of great satisfaction over the years to see how the cost have decreased and the options have increased or individuals who personally invest. Much of this has arisen as a result of competition in the markets and individual investor interest.
It saddens me to learn that the FINRA is seriously considering regulations that would reverse this trend by limiting investors through creating barriers to leveraged and inverse investment options. While there is a need to provide the public with accurate and thorough investment information, it should not be the job of regulators to determine the types and amount of risk that individuals choose to take in the public securities market.
The information available regarding leveraged and inverse ETF funds is straightforward and relatively simple to understand. And while they pose risks, investors are individually capable of understanding those risks. Such investment vehicles provide a straightforward way for the individual investor to hedge their investments or to express their market sentiment without having to resort to much more difficult to understand vehicles such as options.
Such vehicles make it easier for me to pass on my market knowledge to my children since they are not complicated to understand and utilize. Limiting their availability in the name of "protecting" them simply discourages them from taking risks that they believe to be justified since it requires them to deal with regulatory barriers that appear to be unnecessary.
I hope you will continue to allow open access to such ETF funds without regard to such issues as net worth, cooling off periods and specialized testing.
Philip Litle Comment On Regulatory Notice 22-08
It has been a matter of great satisfaction over the years to see how the cost have decreased and the options have increased or individuals who personally invest. Much of this has arisen as a result of competition in the markets and individual investor interest.
It saddens me to learn that the FINRA is seriously considering regulations that would reverse this trend by limiting investors through creating barriers to leveraged and inverse investment options. While there is a need to provide the public with accurate and thorough investment information, it should not be the job of regulators to determine the types and amount of risk that individuals choose to take in the public securities market.
The information available regarding leveraged and inverse ETF funds is straightforward and relatively simple to understand. And while they pose risks, investors are individually capable of understanding those risks. Such investment vehicles provide a straightforward way for the individual investor to hedge their investments or to express their market sentiment without having to resort to much more difficult to understand vehicles such as options.
Such vehicles make it easier for me to pass on my market knowledge to my children since they are not complicated to understand and utilize. Limiting their availability in the name of "protecting" them simply discourages them from taking risks that they believe to be justified since it requires them to deal with regulatory barriers that appear to be unnecessary.
I hope you will continue to allow open access to such ETF funds without regard to such issues as net worth, cooling off periods and specialized testing.