The Best Execution, Outside Business Activities and Private Securities Transactions, Private Placements, and Reg BI and Form CRS sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
Publication Date: February 23, 2023
Interpretations are marked in blue background beneath the rule text to which they relate.
17a-3 Records to be made by certain exchange members, brokers and dealers.
This section applies to the following types of entities: A member of a national securities exchange who transacts a business in securities directly with others than members of a national
ProShares is same as all other investment such as equities, options, futures, and Forex. They has it's own risk and reward. Restrictions on one asset is not fair. Investors should have the right and freedom to pick their investment; and should not have to go through any special process of test. I am strongly object.
Sales Practice Obligations for Commodity Futures-Linked Securities
Dear FINRA Although I am not a big and important investor, however I value my current ability to invest in as diverse a range of assets as possible. I do not request or want regulations to protect me, I will calculate and decide the risk. Therefore, please desist from considering restrictive regulations in any investment category.
Member firms should be aware of an ongoing phishing campaign involving fraudulent emails targeting executives and purporting to be from FINRA employees, with the goal of harvesting credentials. As indicated by the full, expanded email address hidden under a masked email display name, these emails are not from FINRA, and firms should delete them and consider blocking the fraudulent domains.
Implementation of #S7-24-15 will adversely affect my ability to strategically leverage and use inverse funds to hedge against losses on my stock accounts. I should be free to make the public investments need to protect my family's assets without regulatory interference. Please do not remove another freedom!
I am aware of the risks involved in leveraged and inverse funds. I use them to hedge my portfolio, not as my primary investment vehicle. I do not think I should need to take a test, or have a certain amount of assets to invest in these funds. The funds should be available to all investors. Existing disclosures are sufficient.
Why should an investor use Leveraged Funds? 1) Better Outcomes: Yale professors did a study on the use of leverage on retirement investing from 1871-2004 (1): “By employing leverage to gain more exposure to stocks when young, individuals can achieve better diversification across time. Using stock data going back to 1871, we show that buying stock on margin when young combined with more
Leveraged and inverse ETFs provide me an opportunity to protect long-term investment of hard earned capital during natural shifts in market conditions, rather than try and time the market and sell long-term investments to later rebuy (a proven ineffective strategy). To buy protective options is considerably more risky, and cost-prohibitive. These ETFs allow everyday investors a clear manageable
