FINRA’s Financial Intelligence Unit (FIU) and Vulnerable Adults and Seniors Team (VAST) are issuing this Threat Intelligence Product (TIP), which provides an overview of FINRA’s observations regarding the vulnerability of senior investors to investment scams, the devastating consequences for the victims and the importance of education about financial scams to prevent initial victimization and re-victimization.
FINRA is highlighting a recent joint Cybersecurity and Infrastructure Security Agency (CISA) and Federal Bureau of Investigation (FBI) Cybersecurity Advisory published on August 30, 2023, which may be updated as new intelligence is uncovered.
Summary
FINRA has multiple committees that facilitate effective engagement with its member firms and representatives of the public regarding regulatory and policy initiatives related to FINRA’s mission of promoting market integrity and investor protection in a manner that facilitates vibrant capital markets. The purpose of this Notice is to:
encourage member firms and other interested parties
I'm contacting you to oppose the potential additional regulation applied to certain "complex" investments.
First, what I choose to invest in, public or private securities or other instruments, is my sovereign choice. I educated myself on e.g. leveraged and inverse funds, and have an understanding in how they work and their risk/benefit equation as it applies to me.
Let me ask you, who gives you the authority to determine if any investments are too complex for me? You're supposed to protect me from unscrupulous brokers. So now you're protecting me from myself? I am an individual investor.
So now I'm too stupid to not educate myself on investing? I need you to make me:
1. Pass a regulator-imposed test of your specialized investment
Taking away my ability to purchase inverse and leveraged ETFs is insulting to the retail investor. The current tools available to today's investors have leveled the playing field, with retail having the ability to use tools unavailable in the past. These tools allow me to offset my core positions without having to sell the underlying securities. They also allow me to participate in the
Please don't limit retail usage of Leveraged and Inverse ETFs. They're actually easier to use than options/derivatives, and are incredibly useful tools for any active trader. You should not be limiting the average American's ability to build wealth in any way, as long as it doesn't cause harm to anyone else. Both of the brokerages I use have warnings for
I'm a 26 year industry veteran with over a decade on the retail side, over a decade on the institutional side w/corp fin, syndicate, corporate buyback experience - we literally wrote the 10b-5-1 plans with out attorneys back before they became popular.
I literally left the confines of traditional Wall Street for their inability to manage risk and the handcuffs they strap on advisors in
CommenPlease don't limit retail usage of Leveraged and Inverse ETFs. They're actually easier to use than options/derivatives, and are incredibly useful tools for any active trader. You should not be limiting the average American's ability to build wealth in any way, as long as it doesn't cause harm to anyone else. Both of the brokerages I use have warnings for Leveraged and
SEC Approves Amendments to FINRA Rule 5110 to Permit Termination Fees and Rights of First Refusal
