by Max Barry

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by The Regional Nation of The Northern Light. . 28 reads.

Vote For GA resolution Sophisticated Investors Protocol

General Assembly Vote Recommendation

Part of the Information for WA Voters program

Resolution at Vote: Sophisticated Investors Protocol
Vote Recommendation: For

Resolution Analysis
This proposal requires member states to indirectly block retail investors from being sold complex financial products, unless they can prove that they have the means to absorb potential losses and the knowledge to understand these products. It also requires sellers of complex financial products to properly disclose risks. Lastly, it prohibits member states from allowing their citizens to buy these products elsewhere, even if the product is not available in the original member state.

This proposal lets WA members tailor consumer protection rules regarding investments based on their own needs, while imposing a framework that should help promote international trade. We see this proposal as providing a sensible balance between (i) protecting consumers not deeply versed in finance from scams or mistakenly purchase overly complex products and (ii) allowing better resourced investors to purchase such products if they desire.

For the above reasons, the Ministry of World Assembly Affairs recommends a vote For the GA proposal at vote, "Sophisticated Investors Protocol".

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