There is no reason a government body should have visibility to private law abiding citizens investments. It is a direct infringement of the 4th amendment on an individuals right to privacy. The only reason a government wants would to be use it as a political weapon.
To have access to that information an individual should be suspected or charged with a crime and a search warrant issued for access
To regulate and restrict those people investing with a smaller amount of start monies while protecting and increasing the growth of dirty monies received by washing and redistributing illegal money, like from politicians who sell votes to the highest bidder or like Pelosi who gets early information known as insider trading, passing it and washing it to become legal.
Leveraged funds are important to my investment strategy. I diversify my investments in the market as a whole and use leveraged funds to boost my returns. If I am able to invest in the S&P, I should be able to leverage that. I am well informed on how the leverage products work including decay. I implore you not to limit my ability to invest as I see fit.
Why do regulators think US citizens are incapable of making their own informed decisions? We should not limit the ability of people to decide how to invest their own money whether it is leveraged funds or any other funds for that matter. We already have access to the prospectuses and can determine what is appropriate for our risk appetite.
Investing in leveraged ETFs is a useful tool for retail investors and has clearly communicated risks and returns. I used them in my early investing days when I was very open to risk and as I have aged I phased out of them. Other people should also have the opportunity to take high risk high reward actions in an informed way.
It is very important for an informed and risk aware investor to take calculated risk. While leveraged funds are riskier than traditional stocks, funds, etc, none-the-less, they provide a very crucial diversification alpha to smart investors.
I strongly urge SEC, regulators, Congress, and everyone else involved in restricting the access to leveraged ETFs in retirement accounts.
Instead of creating new regulations that impact individual investors you should focus on making investor education easily accessible. Having a digital library full of the information you want us to know that is easily accessible and having brokers include a link to it within their platforms should be more than sufficient for anyone who wants to learn.
Comments:leveraged ETFs are investments through legitimate brokers and are described in exquisite detail in their literature. Warnings pop up whenever trying to execute a trade. That should be enough for any investor to be informed completely. Any more is an example of government getting into what should be my private affaires. Please leave the leveraged products alone. Thank You
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.
SUGGESTED ROUTING*
Senior ManagementLegal & ComplianceOperationsTrading
*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The NASD is publishing a suggested Customer Suitability Statement and Agreement to Purchase Form to assist members in complying with SEC Rule 15c2-6.
BACKGROUND AND SUMMARY
Effective January 1, 1990, the SEC
