I suspect that PTD has nothing to do with the public interest and instead is a rule the Brokers wanted for some reason. Not being a broker I've not given it much thought other than to think it is a real anti-free market rule. Why not just limit day trade leverage to accounts over $25K and let everyone else trade their account as they wish on a cash basis?
I'd tell him to take the $5K, open an account at IB, then trade in a demo account funded to $25K for two months. When it inevitably gets to zero, remove the $5K, close the account, and take you out to dinner for saving him all that money.
PTD is a specifically US law. I have o idea if other jurisdictions likewise limit market access to its citizens. One thing about the USA, we aren't as free as many of us want to believe.
FC/ Frisky Cat & I were speaking via PM last night about this PA... That said, It prompted me to dig deep for my old journals going back to `97. October was always the big doom & gloom month of big, parabolic moves in the market.... Something changed in yr 2000.... Going back to my notes .. Jan 14th 2000 Dow prints all time hi @ 11.722... proving to be the swing hi print... Feb 11th 2000 the sell off commenced... Feb 18th 2000 Dow (-295) or 3% in a day.... 20 years to the Day Feb 18th 2020 to which this sell off started. 9 Years later... Feb 24th of 2009 Proved to be the swing lo print on the Indicies that kicked off this 10 + year unprecedented Bull Run! That said, Feb appears to be the New October as Market Lore goes........ "The stocks change... the suckers change... but the market never changes because human nature never changes".... J.L