Subject: File No. S7-06-04
From: Lynn M Vance, CFP

March 1, 2004

Current proposals to eliminate 12B1 fees from client accounts will hurt the small investor. As a CFP practitioner since 1982, I am paid by 12B1 fees to continue to service my clients, which I do every six months by preparing a statement for them, and meeting with them by phone, or individually to go over their fund holdings. If 12b1 fees are eliminated,at .25 basis points, then I will have to stop servicing these accounts, or move them to a fee based account, in which case their servicing fee rises to 1.00 to 1.50 basis points. I dont see what good it will do people to have their account servicing terminated by their representative, or their fees increased because it is the only way to compensate the representative for work done. Dont respond with a knee-jerk reaction to the good work that is done by many representatives at a time when people are more confused than ever, and need our help.