You already see retail investors jumping in based on their risk. You are here, I am here. IA's are individuals who manage on behalf of other people. They have a role of making fiduciarily responsible decisions for typically passive investors.

This also applies to IRA of all kinds as some firms will not let you invest in pennies as part of their risk profile. And that is a rule that can change, which is why many have you sign an additional certification that you understand the risks involved. so yes. it tends to be internal risk management.

If you lost your shirt in pennies, would you sue your Broker? Not if you signed the certification. But can grandma jane sue or uncle henry sue if their IA put their hard earned money into pennies without their knowledge - yep.... You are an active investor - they are not. and IA's shoul be aware of the difference. He has a license for a reason. plus - they make more money preserving that capital....

I also know of scenarios where a client may override his IA on a case by case basis. I have a cousin who has about 200k shares but his IA advised him against it because it was a penny stock.