Subject: File No. S7-06-04
From: Steven W Schindel

April 10, 2004

I support your proposed amendment that would prohibit mutual funds from directing commissions from their portfolio brokerage transactions to broker-dealers to compensate them for distributing fund shares. I oppose any watering down of this prohibition because of the positive impact it could have on me and other small investors.

I currently own stocks and mutual funds in open and retirement accounts. While some funds appear to be well managed and make fair returns for the investors, it is disturbing to discover how various expenses can be hidden from investors.

Nothing short of full disclosure should be the norm.

Regards,

Steve Schindel