Comments on S7-09-04From: Don White [dwhite@tcfin.com]
Sent: Thursday, May 06, 2004 10:22 AM
To: rule-comments@sec.gov
Subject: Comments on S7-09-04

As President of a registered investment advisory firm the elimination of 12b-1 
fees will have very little impact on our firm since the lion’s share of our 
accounts operate on a “fee basis”.  Indeed, less than 5% of our business is 
mutual funds offering 12-b1 trails.  However, the elimination of 12-b1 fees 
would be a huge mistake and a tremendous disservice, especially to small 
investors, that wish to work with an advisor and either cannot afford to pay 
hourly fees or do not meet the account minimums of firms like ours.  This 
ongoing fee, amounting to less than $5 a month on a $20,000 fund is far less 
than what these clients will be asked to pay for the administrative services 
now provided and paid for in part through 12b-1 fees.  These services, 
including tracking down missed dividends, providing basis for income taxes, 
changing addresses, reallocation and most of all protecting these clients from 
being taken advantage of a broker looking to simply create a new front end 
commission, will simply not be served.

Do the industry and the clients that utilize mutual funds in their investment 
portfolios a significant favor and do not go ahead with this misguided idea.

Donald F. White

President

Treasure Coast Financial Services, Inc.

1803 South Kanner Highway

Stuart, Florida 34994

www.TCFin.com

Securities offered through Mutual Service Corporation

Member NASD/SIPC

(772) 283-6342 Ext. 101