Investing in publicly traded securities is an individual investors right and they are fully accountable for the results (positive or negative). You may ask them to sign an additional waiver / acknowledgment of the risks but you should not restrict them. Additionally, You may put disclosure requirements on these leveraged and inverse funds to improve transparency to the investors. As a regulatory body, that is what the scope and focus should be.
Kartik Chandar Comment On Regulatory Notice 22-08
Investing in publicly traded securities is an individual investors right and they are fully accountable for the results (positive or negative). You may ask them to sign an additional waiver / acknowledgment of the risks but you should not restrict them. Additionally, You may put disclosure requirements on these leveraged and inverse funds to improve transparency to the investors. As a regulatory body, that is what the scope and focus should be.