July 11, 2007
Dear Ms. Morris,
I am writing to you to express my sincere opposition of the scrutiny 12b-1 fees are currently receiving. As a licensed insurance professional and registered representative, the use of mutual funds are vital in helping my clients reach their savings and investing goals such as college savings and retirement planning.
Helping people stay on track takes a great deal of service and regular contact. Trails are a very small way for me to be compensated for that effort. It has taken me almost 17 years to build my practice working mainly with existing clients and referrals, while actually making a difference in their financial lives.
If trails are reduced or eliminated, I will have to begin charging an hourly fee. For most of my clients, this will be a much more costly alternative than 12b-1 fees. The mutual companies I use, clearly disclose these charges in their prospectus', so I don't understand where the problem lies.
In conclusion, as the proposal named file no. 4 - 538 would do more harm that good, I urge you to vote against this and any proposal that would restrict or eliminate 12b-1 fees.
Joseph R. D'Alessio