November 2, 2010
RE: File # S7-15-10
I have been a licensed insurance agent registered representative for 21 years. During that time I have strived to achieve knowledge to serve my clients obtaining ChFC, CLU, LUTCF, and LTCP and as much continuing education I can.
I support the new 12b-2 rule to continue 25 basis points and transparency of the service fees that will enable me to keep giving my clients ongoing advice service.
In the heart of the acts of 1933 1934, which chose to regulate commission to protect the consumer and control the abusive margin accounts, I totally agree with not changing the current system.
Competition based on price sounds good but will come with lack of the needed service to assist a very large percentage of the market in all incomes and net worth categories.
The idea to make lower cost to help the consumer will only serve to harm them since I serve all class levels that would not pay fees for advice. Most all my clients would miss many financial planning opportunities due to the unregulated information that is out there today. My clients embrace the knowledge I have, integrity and honesty to meet there needs through commission received for any transactions.
I explain to all clients that first and foremost I will try to find the right solutions for the needs in insurance and investments. Many recommendations that help my clients do not pay anything to me, but is part of giving good advice. Then I explain our industry is so highly regulated and controlled by commissions to protect the consumer with consistent pricing and that commission is simply a function of business and not greed.