"Complex products" are a valuable resource for investors for diversification of investment strategy and risk mitigation that should be available to all investors. The notice tries to draw parallels between option trading and "complex products", but there is a significant difference in the level of leverage and potential financial exposure between these investments. Investors should be given the opportunity to decide for themselves which publicly traded equities and ETFs they want to engage in without regulatory impediments. FINRA and SEC should instead focus on ensuring accurate and timely information is made available to investors to allow them to make their own decisions.
R Cownden Comment On Regulatory Notice 22-08
"Complex products" are a valuable resource for investors for diversification of investment strategy and risk mitigation that should be available to all investors. The notice tries to draw parallels between option trading and "complex products", but there is a significant difference in the level of leverage and potential financial exposure between these investments. Investors should be given the opportunity to decide for themselves which publicly traded equities and ETFs they want to engage in without regulatory impediments. FINRA and SEC should instead focus on ensuring accurate and timely information is made available to investors to allow them to make their own decisions.