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Song He Comment On Regulatory Notice 22-08

Song He
N/A

I strongly oppose the proposed rule changes that would restrict or even block access of certain investments including leveraged and inversed funds.

The decision of choosing investment vehicles can only be made by individual investors, not a small group of regulators. To protect the interest of individual investors, the regulatory should work toward ensuring fairness by enabling equal access to information and investment tools (among individual and institutional investors), not the other way around. The proposed changes, if taking effect, would greatly harm the individual investors, and create even more unfair advantages for the privileged few.

The leveraged and inverse funds are very important tools for me to hedge against risks in my investment portfolios. These tools had been wildly used among individual investors for years.

It is common sense that investing in stock market has risks, and when leveraging, the risk is amplified along with the reward. It is as common as the knowledge people have about driving driving a car has risk, and when you go onto highway, the risk increases while you could get to your destination faster. So, I dont think people need to pass a test in order to have access to these common investment tools. All the risk factors has already been included in all the disclosures and have been made available to investors since they open an account.

Restricting peoples right based on assumptions that they are not intelligent enough to make their own choices should never be the way of protecting them. The last thing we need from our regulators is the communist styled rules.

We need FINRA to seriously consider individual investors rights and abandon this proposal.