Its beside me that instead of looking at the bigger picture the sec wants to take action against freedom of finance. Meanwhile hedge funds are allowed to run rampant. What they do is illegal and should be under investigation. Thank you for considering my comment in advance.
This proposed action is unnecessary and seeks to restrict individual choice and investment vehicles for individual investors. These investments are an important part of my investment strategy and when used wisely can be leveraged to minimize loss during market downturns without having to liquidate long-term holdings.
Regulatory Obligations and Related Considerations
Regulatory Obligations
Reg BI establishes a “best interest” standard of conduct for broker-dealers and associated persons when they make a recommendation to retail customers of any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
Broker-dealers are also required to provide a
This interpretive material concerns the types of business expansions that will not require a member to submit a Rule 1017 application to obtain FINRA's approval of the expansion. This safe harbor applies to: (1) firms that do not have a membership agreement, and (2) firms that have a membership agreement that does not contain a restriction on the factors listed below.
The safe harbor is not
This rule is no longer applicable. NASD Rule 1010 Series has been superseded by FINRA Rule 1000 Series. Please consult the appropriate FINRA Rule.
This interpretive material concerns the types of business expansions that will not require a member to submit a Rule 1017 application to obtain FINRA's approval of the expansion. This safe harbor applies to: (1) firms that do not have a
Protecting investors from harm is a top FINRA priority. And when it comes to specific individuals who may pose a risk, FINRA's High Risk Representative Program is on the case, identifying and monitoring individuals who pose an elevated risk of misconduct to protect investors and maintain the integrity of the market.
This is an outrage. This is the cheapest form of leverage available to the little guy and you want to take it away from us. Leveraged investing is supported by Modern Portfolio Theory for those of us with higher risk tolerances. We understand the risks. Dont punish us for the irresponsible actions of a few.
As a retail investor, the broad availability of investment products in securities and other asset classes is invaluable. Products such as leveraged and inverse funds are a definite value to retail investors such as myself, and any regulatory actions that limits or removes the ability to invest in leveraged and inverse funds is not appropriate nor wanted.
Investors are already aware of the risk that these funds bring. Why limit access? If the goal is to prevent people from not understanding the consequences of their actions, create a warning that brokers must display before purchasing these kinds of investments - don't limit investors from access to funds we love!
I am an educated adult who can make my own choices about what investments I make. I DO NOT need the government to tell me what to invest in, what not to invest in or be involved in any way in regulating leveraged or inverse funds.
I vehemently disagree with this proposed action
