Afternoon,
I was recently notified about some potential regulation that may impact the ability for ordinary people to invest in complex investments, particularly leveraged funds.
This is troubling to me. In the last 5 years I have been studying investment strategies and just recently took the series 65 with the hopes of helping other people with their investment goals. My studies have had a
I fall into the category of investors which this regulatory notice is aiming to protect: I am a relatively young retail investor who has chosen to invest in complicated funds on a self direct brokerage. Therefore, I feel the need to discuss my experience with complex products.
I acknowledge that these funds are more complicated than conventional products. However, complication does not mean
<p>Payments by an investment adviser to broker-dealers in the form of rights to receive cash compensation upon the occurrence of specific corporate events (e.g., initial public offering of shares of the adviser) do not constitute "non-cash compensation" under NASD Rule 2830(l).<br/></p>
To further restrict access to complex products would be a mistake. Demanding that brokerages and fiduciaries provide education on how these products work makes sense, but restriction earlier in my investing career actually cost me money. I currently use ETFs, leveraged instruments, and options to limit my risk.
Before starting, I spent hours and hours on educational sites, watching videos, and
"However, important regulatory concerns arise when investors trade complex products without understanding their unique characteristics and risks." Like the complex derivatives that the large financial institutions created leading up to the Global Financial Crisis and collapse of the housing bubble? Until you remove the ability of institutional investors to be excessively leveraged with
SUGGESTED ROUTING:*
Senior ManagementCorporate FinanceLegal & ComplianceTrading*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The NASD requests comments on a proposed amendment to Part 111, Section 5 of Schedule D to the NASD By-Laws to provide nonquantitative designation criteria for limited partnerships that list on the Nasdaq
(a) Definition of "Ranking Entity"
For purposes of this Rule, the term "Ranking Entity" refers to any entity that provides general information about investment companies to the public, that is independent of the investment company and its affiliates, and whose services are not procured by the investment company or any of its affiliates to assign the investment company a
Understanding the benefits and risks of various types of orders can help you avoid unintended losses and better ensure your trades are executed in a timely manner and at a price with which you are comfortable.
SUGGESTED ROUTING:*
Corporate FinanceLegal & Compliance*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The NASD requests comment on amending the filing requirements of the Interpretation of the Board of Governors — Review of Corporate Financing to exempt offerings of Canadian issuers filed on proposed SEC Form F-9, and on Form F-
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