May. 05, 2020
It is my opinion, as a private investor, that Use of Derivatives by Registered Investment Companies and Business Development Companies; Required Due Diligence by Broker-Dealers and Registered Investment Advisers Regarding Retail Customers’ Transactions in Certain Leveraged/Inverse Investment Vehicles, File No. File No: S7-24-15, Release Nos.: 34-87607, IA-5413, IC-33704 should NOT be finalized. As shared by other public commenters, the risks of using leveraged and inverse investment funds are fully disclosed and very understandable by the average investor. Adding this rule creates a burden that ultimately increases the cost for the investor by requiring unnecessary and aggravating data sharing with the broker and by requiring cost INEFFECTIVE time for discussion. The mere thought that I may not be able to sell my current investments in these types of funds without a discussion with my broker is utterly ridiculous. Finally, any additional rule-making that uses investor ignorance as its premise is offensive and inappropriate in the United States of America. Investors who do not understand investment options should engage professional advice and those who choose not to seek advice demonstrate their acceptance of risk by default. Excessive rules do not protect anyone but rather make independent decision-making without bias of others near impossible. This rule must not be finalized. Thank you, Kent Savage 1370 Groggins Fry Nicholasville, KY 40356