Dear Finra,
I became involved in managing my own portfolio as a college student. While I may not be a finance major, as an investor I have had a net benefit to have free access to a variety of financial instruments. Yes, some are "complex" such as inverse funds, but that does not mean that this area of investing needs regulation. It is up to individuals to exercise their best
I do not believe we need government regulators limiting our investment choices. I have used leveraged funds to help balance my portfolio for years and I should have the rights to continue to do so. I am well educated and more than capable of properly using these financial instruments as part of my overall investment strategy.
Please reconsider limiting who may invest in leveraged funds and inverse funds. We are quickly seeing only those who are already financially established being allowed to invest in securities that have potential for high upside. As such, the cards are being stacked against the average investor, even those who are willing to educate themselves and accept the risks.
Equal access to products and services is central to a capitalist economy. Blocking investment vehicles to those on the inside furthers the perception that our financial system is rigged. Blocking a restriction access to these products will only encourage movement of funds offshore and possibly hiding them from regulators. For the sake of the industry and our nation, work to reduce regulations,
The Financial Industry Regulatory Authority's mission is to: protect investors and safeguard market integrity By making leveraged products harder to access for lower net worth individuals the only investors that you are protecting are high net worth individuals who can afford to pay high advisor fees to continue to access leverage products without any effort
Its really not your right to block or restrict investors the right to choose what they invest in. If someone wants to leverage 3x 4x or 100x its their right and their risk. If they win big they win. If they lose it all its their own fault. Children need their hands held. Adults playing in the financial world need to take responsibility for their own actions.
Remarks by Chairman and CEO Richard Ketchum at the FINRA Annual Conference
I believe everyone should have the same privilege to choose their investment. There shouldn't be a special test for the public investors to gain right to invest in such investment like leveraged and inverse funds. I believe in the US economy and long term leveraged bet on US economy is the only way to gain the financial freedom. Please don't take this away from me.
My family's long-term investment plan includes leveraged ETFs. Our financial decisions have been made under the assumption leveraged ETFs would be available in the future. The SEC has already approved these funds. We don't need FINRA to hold our hands. Please don't assume you're smarter than we are.
I would prefer to have the freedom and flexibility to make the financial decisions that are best for me and my family. That means being able to determine for myself whether an investment vehicle is too complex. This is not something I trust FINRA to regulate better than I can regulate for myself. The proposed intervention is unwelcome, unwise and oversteps the authority that FINRA should wield.
