File No. S7-24-15

U.S. Securities and Exchange Commission. Does the information you get from mutual funds or other funds really work for you?



    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.


Questions


Item 1: General Identifying Information

Instructions: At your option, you may include general identifying information that would help us contextualize your other feedback on the proposal. This information could include responses to the following questions, as well as any other general identifying information you would like to provide. Responses to these items—like responses to the other items on this Feedback Flier—will be made public.


b. What is the size of the firm in terms of:  
             
    
                                      
                                                                    


Item 2: Cost to Comply with the Proposed Due Diligence and Account Approval Requirements

a. What do you expect the cost to your firm would be in order to comply with these proposed requirements (in terms of combined internal and external costs)?  
1.) For an investment adviser (check one box):
Estimated cost ($)
$0 - $5,000
$5,001 - $10,000
Greater than $10,000
2.) For a broker-dealer (check one box):
Estimated cost ($)
$0 - $25,000
$25,001 - $50,000
Greater than $50,000

Item 3: Other Feedback on Proposed Sales Practices Rules


We will post your feedback on our website. Your submission will be posted without change; we do not redact or edit personal identifying information from submissions. You should only make submissions that you wish to make available publicly.

If you are interested in more information on the proposal, or want to provide feedback on additional questions, click here. Comments should be received on or before [insert date 60 days after publication in the Federal Register].

Thank You!

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Other Ways to Submit Your Feedback

You also can send us feedback in the following ways (include the file number S7-24-15 in your response):
Print Your Responses and Mail Secretary
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
Print a PDF of Your Responses and Email Use the printer friendly page and select a PDF
printer to create a file you can email to: rule-comments@sec.gov
Print a Blank Copy of this Flier, Fill it Out, and Mail Secretary
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090


File No. S7-24-15