Subject: File No. S7-15-10
From: Anthony Nori

August 19, 2010

Dera Ms. Murphy,
In my opinion, the new proposed 12b-1 rules will do exactly the opposite of what the SEC is trying to accomplish. My practice encompasses Middle America, not the wealthy. The 12b-1 (c shares) allows me to work with this group and be compensated fairly for the service I provide. If the new rules are adopted, it will force me to no longer work or service these clients because what I will now be paid, will not justify the amount of work/time required. The 12b-1 service fee is vital to Middle America because it gives them access to registered planners which all research has showed, they desperately need. If the SEC adopts the new rule, Middle America will be the loser, which if I am not mistaken is the opposite of what the SEC is trying to accomplish. Here are two alternatives which in my opinion would be better. 1. Increase the disclosure to the point that the SEC feels clients KNOW and UNDERSTAND these fees are being paid (remember, price is an issue ONLY in the absents of value). Or 2, grandfather ALL existing accounts indefinitely (not convert to the new rule) so there is no need to fire the small clients after the 5 year grace period and adopt the new rules for new accounts. Utilizing either of the above (I strongly favor number 1) is by far a better solution then what is currently being proposed.
Anthony Nori