[GA - In Queue] Repeal: "Sophisticated Investors Protocol"

[Voopmont]

Repeal: "Sophisticated Investors Protocol"
Category: Repeal | GA #642
Proposed by: Tinhampton | Onsite Topic
Replacement: None​

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General Assembly Resolution #642 “Sophisticated Investors Protocol” (Category: Regulation; Area of Effect: Consumer Protection) shall be struck out and rendered null and void.

Knowing that Article 1 of GA#642 grants member states' "competent authorit[ies]" the power to define who is, or is not, a "sophisticated investor" based on various criteria, while Article 2 requires them to only allow sophisticated investors to access certain financial products,

Observing that Article 1 gives each competent authority the power to define who is a sophisticated investor based on such criteria such as "wealth and income" and "education, experience, and knowledge of instruments and products," which are not outlined by this (or any other) resolution, but are therefore presumptively within each competent authority's margin of appreciation, and

Convinced that there is accordingly no need for GA#642 to remain on the books, since member states would be allowed to continue restricting (or denying) access to high-risk financial products by investors who they deem to be inexperienced based on their wealth, income, or knowledge of such products, and to keep using their own definitions of these terms to justify such restrictions, whether or not the target resolution is in force...

The General Assembly hereby repeals GA#642 "Sophisticated Investors Protocol."

Note: Only votes from TNP WA nations, NPA personnel, and those on NPA deployments will be counted. If you do not meet these requirements, please add (non-WA) or something of that effect to your vote. If you are on an NPA deployment without being formally registered as an NPA member, name your deployed nation in your vote.

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Voting Instructions:

• Vote For if you want the Delegate to vote For the resolution.
• Vote Against if you want the Delegate to vote Against the resolution.
• Vote Abstain if you want the Delegate to abstain from voting on this resolution.
• Vote Present if you are personally abstaining from this vote.

Detailed opinions with your vote are appreciated and encouraged!

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For	Against	Abstain	Present
0	2	0	0

 

[Voopmont]

Information For Voters

 

[Voopmont]

[Non-WA]

Against. The proposal's only argument is that a vague definition of "sophisticated investor" makes it superfluous by allowing states to set a high standard for being a sophisticated investor when they could just set such a high standard to access these investment vehicles in domestic law. This entirely ignores that the whole point of the resolution is for your average joe to not be able to get into a lifetime of debt by putting a 20x leverage short on bitcoin, or any derivative thereof. Whether you think the WA should be able to dictate that is a different story, but the proposal's main argument is at best a misunderstanding of the law and at worst dishonest.

 

[Bankowiata]

Against

 

[nvxl]

Against