From: Mike Heller [mike6heller@earthlink.net]
Sent: Monday, March 29, 2004 12:21 AM
To: rule-comments@sec.gov
Subject: Comments - File S7-06-04

As an individual investor, I wanted to offer a few comments in this matter.

I believe that complete disclosure, as proposed, is most important at the 
confirmation stage. Abusive compensation practices, etc., once known to the 
investor, will result in no repeat business. This also addresses the 
question of what sort of "pos" disclosure is practical in certain cases, 
such as when an ETF purchase is initiated over the telephone.

Regarding variable annuities, I think the proposed rules should definitely 
apply, as the insurance industry, even more than the general securities 
field, has more than its share of sleight-of-hand sales people.  Generally 
speaking, I think more different types of securities should be covered by 
the proposed rules, rather than less.

Regarding front-end loads, you could require a percent figure to be 
disclosed. For back-end loads, you could require three figures, plus a 
sentence of explanatory text. The three figures would be (1) the nominal 
percent load, (2) the equivalent percent, with respect to the amount of the 
original investiment, if the final investment were 50% more than the 
initial investment, and (3)  the equivalent percent, with respect to the 
amount of the original investiment, if the final investment were 50% less 
than the initial investment.  For example, for an initial $1000 investment, 
if the back-end load were 5%, the first figure would be 5%, the second 
figure would be 7.5%, and the third figure would be 2.5%. The explanatory 
text would need, perhaps with a simple figure, explain that the 5% back-end 
load will be applied to the final amount, which may be more or less than 
the original amount.

Regards,
	Mike Heller
	330 Jacaranda Drive
	Danville, CA 94506