Limiting investments to the ultra-wealthy erodes trust in FINRA. All investors assume risk and the investors, after being made aware of the risks, should control their investing behaviors. Please do not limit my investment options just because Im not a member of the elite club.
As a personal investor, I understand the risk and reward with leveraged products. In todays time, there is plenty of information available for someone to make an informed decision around suitability. They are not for everyone, but for those that understand the risk, they can be a great addition to their portfolio. There does not need to be regulation around self-directed investing.
I support the notion that investors should take the risks on their own investment. Any restrictions like passing test shouldn't be imposed. I am using leveraged and inverse funds (ETFs) to hedge my risks in short-term basis while mostly I have invested in the long-term basis.
TO: NASD Members Participating in Sales of Direct Participation Program Securities
The National Association of Securities Dealers, Inc. is circulating the attached questionnaire to members which participate in sales of direct participation programs in order to ascertain the level of interest in a communications service that would disseminate information about DPPs to members and sponsors. This
Comments: Please do no limit access to leveraged funds. I use them extensively, and they are excellent trading products. For those that are not familiar with them, there are excellent precautions in place by brokerages, including the requirement to read and sign information about the risks, as well as a risk statement with every trade.
I believe people should be informed as to what type of risk they are taking but they are responsible for understanding what investment they are making and thus what magnitude of risk they are taking. Please don't restrict my ability to invest or my rights to invest in leveraged or inverse funds.
Thank you.
The government should not and does not need to protect investors by limiting the ability to hedge risk. In fact taking away the ability to hedge risk creates a more perilous environment. I strongly disagree with any limits or gates being established by the government to help people save them from themselves.
This is the United States of America!! I should have the right to invest and leverage risk any way I see fit. Who are you to say if I and/or anyone else is smart enough or wealthy enough to take on higher or inverse risks based on their own personal investment strategies?
What ever happened to the concept of individual responsibility? Why does government and quasi government entities think I/We are blithering idiots?
For the record: I am adult who understands risk. If I wish to invest in a high risk investment, That is my prerogative!
In short: IT IS NONE OF YOUR/GOVERMENT'S BUSINESS!!
The proposals exceed the authority of SEC as watchdog and while perhaps intending to protect the rights of investors against risks of loss, or their own capacity or qualifications to invest actually result in immunizing the sellers from liability. The proper way to go would be notice and warnings as assumptions of risks.