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Steven Ede Comment On Regulatory Notice 22-08

Steven Ede
N/A

High net worth requirements are a horrible restriction to place on leveraged securities. A regulator imposed test , and attesting to reading certain materials is fine because anyone has the capabilities to do this, many individuals have been investing their entire lives and have a plethora of knowledge and would not be able to meet this high net worth requirement. Leverage and inverse securities do pose higher risk but so do options and short positions, why should leveraged and inverse have a high net worth requirement when these other risky investments do not? Retail investors are making up a larger portion of the markets than ever before, do not limit their abilities now, have required test to build their knowledge and require readings to further that knowledge, but do not place a requirement that will exclude the majority of the population form now investing in these securities.