Background
In March 2017, FINRA issued a Special Notice on its engagement programs as part of FINRA360. Based on comments and suggestions regarding the usefulness of some advisory committees, their membership and their effectiveness as a vehicle for dialogue between FINRA and member firms, FINRA is making several changes.
Operational Impact of Rule Changes
Rather than establishing a new
It's my family's money at risk. We are perfectly capable of understanding leveraged and inverse funds. Let us decide which vehicles we use. This proposal will only help the large institutions by once again handicapping the private investors even more with so called rules designed to "protect" them.
January 31, 2012
Dear Executive Representative/Chief Compliance Officer:
FINRA® is publishing its
2012 Regulatory and Examination Priorities Letter
to highlight new and continuing areas of significance to our regulatory programs, including topics of heightened importance to FINRA's Member Regulation, Market Regulation and Enforcement Departments, and the
Dear FINRA,
I've heard and am very concerned about the potential new regulations restricting access to leveraged and inverse mutual funds and ETFs.
It is very important for the US regulators to allow free and fair access to creative investment products in a publicly available format. In fact, there have been many private investment vehicles (hedge funds, private equity, venture capital
I strongly object to any FIRNA curbs on my ownership of "complex" public exchange traded Products, when the vendor has made adequate disclosure of the product's operation and risks. There are far more useful actions that FIRNA can take in other areas to protect investors, eg. SPACs, private equity marketing, etc.
Individual private investors should have the right to invest unhindered in inverse and leveraged stock index funds. These funds facilitate methods of trading that can be used to manage market risk, and are easier to trade than options. Investors should have this method available for investing. Please do not restrict investors access to these types of funds.
SUGGESTED ROUTING*
Senior ManagementCorporate FinanceLegal & ComplianceSyndicateTrading
*These are suggested departments only. Others may be appropriate for your firm.
REQUEST FOR COMMENTS
EXECUTIVE SUMMARY
The NASD is publishing for comment an amendment to Schedule E to the NASD By-Laws that would exempt a qualified independent underwriter from the pricing requirements of Section 3(c)(
We do not need regulations limiting smaller investors abilities to take on risk. There is adequate warnings already in place for levered ETFs. Small investors already cant access many investments that the wealthy can such as private equity and venture capital. This will push more investors into taking riskier margin loans rather than a managed leveraged product.
I oppose this ruling as a retail investor because I have responsibly been trading leveraged funds for multiple years without additional risk. I feel this ruling imposes totalitarian control on my money and limits my freedom as a private citizen. If this ruling isn't stopped now, additional constraints on investing for the normal populace will continue to be incurred without reason.
I am fully capable of determining my own level of risk with investing and frankly find it insulting that the government would presume to limit my choices.
Instead of telling members of the public what they can do with their own money, perhaps spend more time reviewing what elected officials do with their money when combined with private information.