April 13, 2020
Dear SEC,
In about 2008, FINRA ruled that their Brokers could not use these leveraged items. Since I was already using them I called FINRA and had a long conversation about why they had ruled against letting Brokers use them.
I called because I wanted to be sure I was not missing something about these investment vehicles. At the time I was an SEC registered RIA so FINRA did not regulate me. We discussed that at the beginning of the call.
The lawyer from FINRA went through the 2 basic reasons they had for not allowing their Brokers to use the products, both of which were based upon what FINRA knows about their Brokers: First, the Brokers will not describe the product properly and second, the Brokers will not watch the investment day-to-day the way that an RIA will/must watch.
So, I was told that there is no problem with the product, only the Brokers who, still , do not accept fiduciary responsibility for their work.
I have used these leveraged items since 2008 including running a hedge fund with a strategy that was based n these underlying securities. I have a lot of experience with them as do my clients. I am a fiduciary for my clients.
Please let me continue to do my work without needless distraction and forms that will take time from me watching the investments.
Thank you