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Richard Popp Comment On Regulatory Notice 22-08

RICHARD POPP
N/A

Taking away my ability to purchase inverse and leveraged ETFs is insulting to the retail investor. The current tools available to today's investors have leveled the playing field, with retail having the ability to use tools unavailable in the past. These tools allow me to offset my core positions without having to sell the underlying securities. They also allow me to participate in the declining market vs. sitting only in cash. Leveraged ETFs enable me to effectively borrow funds vs. having a margin account and managing the additional risk of margin calls. The housing market is highly leveraged. Regulators don't prohibit individuals from purchasing illiquid homes with leverage, so why limit access to purchasing other assets via very efficient vehicles. I am highly vested in keeping my own money. Having a regulator limit my brokerage account is a step too far, I can determine how to spend/invest my funds. The actions proposed of requiring passing a test or a waiting period is another hurdle keeping retail investors from using investment tools available to upper-income classes. Limiting these tools will only bring us back to when retail investors were overcharged fees and commissions upfront. Let's not go back to when retail was kept out and limited in managing their funds independently.