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Wendy Fitzpatrick Comment On Regulatory Notice 22-08

Wendy Fitzpatrick
N/A

Limiting the use of of leveraged, inverted or other funds deemed "complicated" is a gross disservice to the retail investor.

People should be allowed to invest their money however they see fit, and by taking these products off the market, you could actually cause more financial harm than you think you are preventing.

Imagine a scenario where someone is invested in a leveraged fund that experiences a drawdown. And they add to their position while it is down, being patient and waiting to recover their losses when the fund rebounds.

Now imagine you prevent the use of this leveraged fund. They have experienced the losses of the drawdown but are unable to partake in the profits. You would be severely hurting them financially.

People are smart enough to figure out what is the right way for them to invest, they don't need restrictions placed on them under the guise of "protection." This "protection" could easily end up backfiring and hurting them rather than protecting them.