March 10, 2020
To whom it may concern,
I am commenting on the SEC Proposed Rule #S7-24-15.
I am an informed investor who has read the provided prospectus and summaries of the funds which I invest in. I actively manage my investments and am fully aware of the potential risks that are different from standard funds.
What is unprecedented is a regulatory body trying to directing brokerage firms to asses an investor's ability to asses risk. The SEC has also not provided any data or evidence in support of this belief that the investor is incapable of assessing risk. I strongly disagree with the SEC position to propose these rules.
Some of the risks that I am aware of in regards to my investments consist of:
LI Funds are not suitable for all investors and are not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. Inve stors who do not understand the Funds, or do not intend to actively manage their funds and monitor their investments, should not buy the Funds. LI Funds seek daily leveraged investment results and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. An investment in the Fund is exposed to the risk that a decline in the daily performance of the Index will be magnified. LI Funds pursue daily leveraged investment objectives, whi ch means that the Funds are riskier than alternatives that do not use leverage because the Funds magnify the performance of their underlying index.
Again it is unacceptable that the SEC should think that an investor need be assessed and potentially barred from investing, when all the information is openly and fully provided to each investor. This proposed rule should not be passed.