Finra is going after broker-dealers over "unsuitable sales" leveraged and inverse exchange-traded funds. Suzanne Barlyn and Jessica Toonkel of Reuters report that the regulatory agency's enforcement chief Bradley Bennett Finra officials will "make statements" about proper use of and training around such ETFs.

"We don't have a qualm with the product," Bennett reportedly told the wire service. "We just want to make sure that people who are selling them understand them."

Bennet made his comments at a Practising Law Institute conference Wednesday.

Citing Lipper data, Reuters notes that leveraged and inverse ETFs boast $29.3 billion in assets, 2.55 percent of the $1.15 trillion in ETFs in the U.S.

Finra has reportedly been looking into leveraged and inverse ETFs at least since 2009 [see MFWire.com, 7/2/2009]. 

Edited by: Neil Anderson, Managing Editor


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