From: Mark Leibman [mark@228main.com] Sent: Friday, January 30, 2004 9:39 AM To: rule-comments@sec.gov Subject: S7-06-04 Comment on Proposed Rules: The form examples supplied in connection with the S7-06-04 rules includes in the footnotes the use of quotation marks around "529 plans" in a list of various forms of investments. This is objectionable on the basis that quotation marks are sometimes used to cast doubt, as in I saw you going into the motel with your "wife" last night. Comment A: I advocate removal of the quotation marks around '529 plans' in the form examples. As an NASD-registered representative working on Main Street in a small town, I am committed to meeting the investment needs of all kinds of customers, large and small. A $50 monthly investment in an A share fund generates about $2.50 in gross commission revenues for the first month, and $30 annually. If done in C shares, first year gross commission revenues would typically be $6. Comment B: The rules should not apply to additional subsequent purchases of the same fund that an investor already owns and has received disclosures about. Comment C: The rules should not apply to smaller transactions. Comment D: The rules will reduce the availability of professional investment services to smaller investors. The "point of sale" disclosure requirements as outlined in the proposed rules can not be prepared until a prospective investor has defined a dollar amount to be invested into a specific fund. Generally, at this point in a discussion, the decision to invest or not has already been made so the detailed specific numbers at point of sale will not in actual practice have any impact on investment selection or decision- making by the investor. If the contemplated amount to be invested changes during an extended discussion, registered representatives will be forced to calculate and prepare multiple sets of disclosures. Comment E: The objectives of regulation can be met without the proposed point of sale "investment-amount specific" calculations. This can be accomplished by using percentages where applicable. The proposed rules for transaction confirmation mandate many new back- office processes and procedures that will be costly and difficult to administer, and requires calculations that may be impossible. For example, if a mutual fund company agrees to pay revenue-sharing to a broker/dealer of a flat amount of $50,000 to help sponsor an educational event, plus .05% of asset balances plus.10% of new sales, the percentage ratio of revenue-sharing to new dollar sales is unknowable except in retrospect. Therefore the calculations required by the rule cannot be performed accurately. Comment F: The objectives of regulation can be met without the proposed "investment-amount specific" calculations upon confirmation, which carry costs far beyond their value even if it were possible to comply. Sincerely, Mark Leibman P.O. Box 368 228 Main Street Louisville, NE 68037 (402) 234-2337 or (800) 550-6275 e-mail mark@228Main.com web www.228Main.com fax (402) 234-2667 Securities offered through Linsco/Private Ledger, a registered broker/dealer and investment advisor Member NASD/SIPC