As you know, the Financial Industry Regulatory Authority (FINRA) solicited feedback a few months ago on potential regulations that, if adopted, could restrict or impede the ability of investors to purchase leveraged and inverse funds, as well as many other types of popular investments. Thousands of investors stepped up to voice their concerns, and I want to personally thank you for sharing your views.
Through nearly twenty thousand comments, investors overwhelmingly opposed the measures being considered by FINRA. Many investors highlighted the way they use leveraged and inverse funds for hedging purposes or to pursue other financial goals. They expressed concern that FINRA’s measures could limit investor choice. Many also warned that the measures broke with our long-standing disclosure-based system of regulation and could be arbitrary, discriminatory, and harmful.
We are committed to actively monitoring the FINRA policymaking process and will keep you informed on key developments as they arise. We hope that we can continue to count on your support.
Thank you again for your comments and your attention to this very important matter.
Sincerely,
Michael L. Sapir
Co-Founder and CEO,
ProShare Advisors, LLC