Subject: SEC Review of Rule 12b-1

June 20, 2007

I am against dropping 12b-1fees as I feel damage will be done to the small investor.

I have numerous clients that hold mutual funds. The compliance servicing is time consuming and requires continuous extra support staff for filing, keeping new account forms current, keep current inventory of prospectuses and reports, and other actions needed to meet SEC and NASD compliance. In addition, I spend many hours every month reading various amgazines, attending seminars and study groups in an effort to stay current on mutual funds performance and changes in features. The costs real in dollars and in time in which no income is directly generated are significant. Most importantly, I provide guidance to cclients on their holdings. IF the 12b-1 fees are removed, my business could not service the smaller accounts as they would cost money with no offseting funds. I would ahve to fire many clients and who would want to take them on as clients with no revenue source.

The services provided by the mutual fund companies would probably be cutback and would harm the taxpayers. I beleive the elimination fo 12b-1 fees is shortsighted.

Why do the regulatory agencies go after the brokerage industry in such a controlling way. Other professional fields merrily go on their way increasing costs. I realized there are bad brokers. Unfortuantely, there are bad people in every industry. What about all the dentists laughing their way to the banks as they have no regulation on the fees they charge. What did you pay for your last dental work that was for something other than a routine cleaning? Did anyone ever dictate what a apporpriate fee for a dental crown should be? I know you may be laughing, but remember that financial service providers should be placing their clients interest first but should also be allowed to make a living.

Sincerely,

Sandra Schneider CPA, CFP