Subject: File No.
From: George M Arnold
Affiliation: AALU member and Investment advisor for 40 years

October 27, 2010

While I agree with most of the changes that are being proposed, I strongly disagree with letting Broker/Dealers set their own compensation. This will have a huge negative impact on the middle and lower income investors. They are who you are trying to protect and no one will want to work in this marketplace as you can not be compensated for your time if fees are reduced and based on the size of the account. You will be chasing the larger investor and no one will be left to serve the people you are trying to protect. A lot of my market is the lower/middle income investor and from 40 years of experience I can tell you they need more help than the large investor.