FINRA Highlights Examination Approaches, Common Findings and Effective Practices for Complying With its Suitability Rule
Please see below for comments in response to Regulatory Notice 22-08. Thank you for the opportunity to provide feedback. Definition of complex should be objective- if use of derivatives is a criterion it should be applied to all funds that do so. This suggests that more useful criteria would focus on factors like maximum risk of loss, risk of the fund not being able to meet its stated objectives
With the holiday season upon us and 2023 coming to an end, FINRA’s Cyber and Analytics Unit (CAU) would like to remind member firms to prepare for cyber threats and attacks that may occur around the holidays. Member firms and their vendors should consider reviewing and validating their Written Supervisory Procedures (WSPs), continuing to educate their employees with respect to cybersecurity and effective practices, and testing incident response plans (IRPs) to prepare for, prevent, or recover from an incident.
I believe that most people who do choose to invest in these funds are aware of the risks and do their own homework before they start investing. While I do believe that offering education on the risks, as well as risk mitigation strategies, would be beneficial for traders, I do not believe that extra layers of bureaucracy and testing will create better or safer traders, and will simply reduce the
It is the responsibility of the investor, not the regulators to evaluate market risk. Predetermining these risk and who is qualified to take such risk is a slippery slope. Shall we regulate risk for public companies with historically high PE ratios? it is the investors responsibility to way risk and loss. Investors are not children, they need to take responsibility to for their actions. The
What do a Kenyan brewer and a Pakistani cement manufacturer have in common? Both are publicly traded on stock exchanges in frontier markets.
Options are contracts that give the purchaser the right, but not the obligation, to buy or sell a security, such as a stock or exchange-traded fund, at a fixed price within a specific period of time.
Options can help investors manage risk. But buying and selling options also involves risk, and it is possible to lose money. It pays to learn about different types of options, trading strategies and
FINRA found that RBC failed to have supervisory systems reasonably designed to identify transactions for supervisory review when reverse convertibles were sold to customers, in violation of FINRA's rules as well as the firm's own suitability guidelines.
I oppose any restriction on individual investors use of inverse or leveraged ETFs. I personally have used inverse and leveraged ETFs to protect myself during periods of market volatility as a means to limit my downside risk while keeping invested in the market. I except to lose a certain amount of money on these instruments in many instances but accept that cost because of the downsides of
I as an educated investor want to make decisions on what I invest in. Public investments should be available to me and all the public not just the privileged.
I shouldn't have to go through any special process like passing a test before I can invest in public securities. I understand quite well what I am investing in when I purchase a leveraged or inverse fund. I understand the risk