From: Frederick Nelligan
Sent: January 28, 2007
Subject: File No. S7-25-06

I wish to state my objection to the SEC's proposed rule changes for so-called "accredited investors".

Historically, the United States has been based on "equality" for all people. The current (and proposed) definition of an "accredited investor" is totally opposite of what our country and constitution are based on. Eliminating 96% of ALL investors from access to hedge funds is economic discrimination. The proposed rules changes will increase that percent to close to 99%. This is economic discrimination at its worst!

My wife and I currently do not meet the 'accredited' requirement; though, we are getting close. Do we have plans to invest in hedge funds in the immediate future? No. Would we like to several years from now? Absolutely... IF we find a good fund manager and IF the SEC/federal government allow us.

In the age of the internet and the broad dissemination of information (monetary, technical, and regulatory) available to any person... there is just not the need for "protecting" the small investor as there had been in decades past.

So be pragmatic and be historical: equality for all... in the investment vehicles offered here in the United States of America.

Thank you for your consideration,

Frederick Nelligan
Portland, OR