From: Sherry S McGhee
Sent: March 31, 2005
To: rule-comments@sec.gov
Subject: File No. S7-06-04


I am a licensed insurance professional and variable products salesperson. I am writing to you because the new disclosure requirements contained in the SEC's proposal regarding the sale of mutual funds and variable products are unnecessary and will provide no meaningful additional protection to consumers.

The new disclosure requirements proposed would lead people to focus on the investment’s costs rather than look at the overall investment and judge which investment is best for them including the actual potential returns. I feel the average lay person is already confused by the stack of information that we must give to them. What I feel is needed are salespeople that are more honest and upfront with their clients. I have always felt that those who are trying to hide something or mislead the client will do so even with the new requirement.

The expense and fee information is already in the required prospectus and that is a good place for the professional to reference with their client teaching them how to access and use the prospectus. This addition requirement would preclude that step as a training tool. The prospectus requirements were simplified in 2002 by steps taken by the SEC which were good steps. If these are still issues regarding the prospectus please focus your efforts on that tool.

For these reasons, I urge the NASD withdraw the proposed rule.

Thank you for your consideration of my views on this matter.

Sherry S McGhee