Steven Guillaudeu Comment On Regulatory Notice 22-08
Steven Guillaudeu
N/A
FINRA,
I am strongly opposed to regulations being considered to limit the ability of the public to invest in leveraged and inverse funds without such things as passing tests on investment knowledge, demonstrating high net worth, getting approval from a broker, attesting to reading certain materials, and going through "cooling off periods" during which one cannot invest.
Information about these funds - how they work, their potential benefits, and their risks - is readily available and easily understood through a simple web search (in addition to it being explained in detail through each prospectus). Adding a burden on investors to essentially prove themselves worthy of investing in these tools creates a cost for each of us. This cost is our time. I do not see the return of investment of that time for myself. When summed, I cannot imagine the problem you are likely trying to solve - preventing uninformed investors from making mistakes - is significant enough to warrant the cost to those (vast majority I imagine) of us who know what we are doing with these investments.
I personally use leveraged funds linked to many asset classes for a portion of my investment portfolio in order to amplify potential returns while maintaining reasonable portfolio risk. By having a plethora of leveraged funds that represent across asset classes, I am able to maintain diversification, the key to maintaining acceptable portfolio risk. Limitations in the ability to invest in these funds would significantly hinder my investment growth.
Thank you for considering my opposition to these measures.
Steven Guillaudeu Comment On Regulatory Notice 22-08
FINRA,
I am strongly opposed to regulations being considered to limit the ability of the public to invest in leveraged and inverse funds without such things as passing tests on investment knowledge, demonstrating high net worth, getting approval from a broker, attesting to reading certain materials, and going through "cooling off periods" during which one cannot invest.
Information about these funds - how they work, their potential benefits, and their risks - is readily available and easily understood through a simple web search (in addition to it being explained in detail through each prospectus). Adding a burden on investors to essentially prove themselves worthy of investing in these tools creates a cost for each of us. This cost is our time. I do not see the return of investment of that time for myself. When summed, I cannot imagine the problem you are likely trying to solve - preventing uninformed investors from making mistakes - is significant enough to warrant the cost to those (vast majority I imagine) of us who know what we are doing with these investments.
I personally use leveraged funds linked to many asset classes for a portion of my investment portfolio in order to amplify potential returns while maintaining reasonable portfolio risk. By having a plethora of leveraged funds that represent across asset classes, I am able to maintain diversification, the key to maintaining acceptable portfolio risk. Limitations in the ability to invest in these funds would significantly hinder my investment growth.
Thank you for considering my opposition to these measures.