Wall Street Regulators Mull ‘Staggering’ Curbs on Complex ETPs

Wall Street watchdogs and issuers of “complex” exchange-traded products are headed for a showdown as regulators weigh tough and far-reaching rules to curb retail investor access.

Market players are up in arms after the Financial Industry Regulatory Authority called for comments last month on whether strict measures should be introduced to raise the barriers to such products. Depending how Finra chooses to define the term, the crackdown could hit everything from leveraged and inverse vehicles to cryptocurrency-linked funds and defined-outcome strategies.

Enhanced disclosures, a “knowledge check” for retail customers and a requirement to seek Finra approval for the advertising of …

Read more at news.bloomberglaw.com

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