We are proposing two new sales practices rules—rule 15l-2 under the Securities Exchange Act of 1934, and Rule 211(h)-1 under the Investment Advisers Act of 1940—that would require a broker, dealer, or registered investment adviser to exercise due diligence in approving a retail customer’s or client’s account to buy or sell shares of certain “leveraged/inverse investment vehicles.” More information about our proposal is available at https://www.sec.gov/rules/proposed/2019/34-87607.pdf.

    We are particularly interested in learning what small broker-dealers and investment advisers think about the proposed new sales practices rules’ requirements. Hearing from these smaller firms could help us learn how our proposed rules would affect them, and evaluate how we could address any unintended consequences resulting from the cost and effort of regulatory compliance while still promoting investor protection. We would appreciate your feedback on any or all of the following questions.

All of the following questions are optional, including any questions that ask about identifying information. Please note that responses to these questions – including any other general identifying information you provide – will be made public.