From: Kevin Ellis []
Sent: Wednesday, May 26, 2004 4:46 PM
Subject: S7-04-04:

Ladies and Gentlemen:

I apologize for responding late, but I respectfully wish to register my strenuous opposition to the provision of Proposed Rule 204A-1 that creates the legal presumption that directors, etc. are access persons and thereby subject to personal securities reporting requirements and pre-clearance of personal securities trades. While I understand the intent of the provision, it appears overreaching for those that practically do not have access to client information or do not participate in making investment recommendations. Further, as a small advisor (we have a staff of four employees), this proposed rule may significantly impair our ability to attract competent outside directors that do not find the proposed rule objectionable.

With all due respect, I suggest that any requirements related to personal trading be limited to those parties (e.g. advisors and representatives of advisors) having actual access to client information or actually engaged in providing investment advice to clients. Board members that are detached from the day-to-day advisory business, yet contribute meaningfully to broad corporate governance, should not be subjected to these requirements. The negatives of such a provision (e.g. likely loss of quality Board members), far outweigh any potential benefits.

Thank you for your time and consideration.


Kevin P. Ellis

Kyle Financial Services
10950 N. Cedarburg Road
Mequon, WI 53092

Telephone (262) 242-2420
Facsimile (262) 242-2661