November 4, 2010
File Number S7-15-10
I have concerns about broker dealers being allowed to set their own fee's on mutual fund accounts. I used to work for an life insurance company that created agent set commissions. We could chose what we were paid to make it more competitative. I always felt dirty using that policy and quit selling it (I felt like a used car salesman). They are no longer selling new products. Many of us could not stand it.
I only want to sell products to consumers that are fairly priced. If someone else tries to set it at a lower rate than us everyone will be arguing about service, and consumers may shop for the lowest bidder, and consequently not receive the help they need. My experience is you get what you pay for. Allowing this segment of the investment industry to go this direction will hurt those you are asked to protect, the American public. If it becomes too competitative I will quit assisting my clients with it. I already do it at a loss with the current 12-B1 fees as it is. For less I will not try. Many of those I have helped with these types of funds are only investing $100 a month into asset allocation funds. They do not have the ability to pay for advice separately from the fund costs. Less assistance will equal more dependance on the government when less investing happens.
Please do not do this. I have been in this industry for 12 years and it makes no sense for the average consumer. The high net worth investors will not be hurt. Unfortunaly, most will be.