February 16, 2004
To Whom It May Concern:
I believe it is very important to make changes regarding disclosures.
It should be required for an advisor to show in writing any extra bonus, higher payouts, or compensation tied to selling proprietary products.
Probably even more imporatant is the subject of Fiduciary responsiblity. Anybody who is doing fee based business as a Registered Investment Advisor, must act as a fiduciary. This must include Wire Houses. If wire houses are doing any sort of fee based business, they shouldnt be allowed to sell out of their own inventory. They should be required to purchase all investments on the exchange or NASDAQ.
Finally, the insurance industry should be required to follow the same regulations of the NASD and the SEC. All fixed and variable annuities Should require the disclosure of total Gross Dealer Commissions. The customers should be reqired to sign off on these commissions.
Thank you for your time.
Mark Eisenstein