July 6, 2007
The current 12b1 situation may not be the same as it was when it was originally devised. But now, it supports service for small accounts. If 12b1 fees are eliminated, the result will be that advisors will no longer be able or willing to service the smaller accounts. This would be a horrible side effect. Now, advisors feel compensated for providing ongoing advice in exchange for the 12b1. If the fee is not paid, millions of middle class investors will left on there own, without an advisor to service there account.
Sincerely,
Scott Dolitsky
CFP
D&B Strategic Wealth