From: Jim McGuinness [jmcguinness@mscmail.biz]
Sent: Monday, May 10, 2004 10:00 AM
To: rule-comments@sec.gov
Subject: S7-09-04

Do not eliminate 12b-1 fees on mutual funds!

Approximately 90% of customers are NOT of the self-serve type, and need
regular advice and assistance from their registered reps.  This advice will
be eliminated it the 12b-1 fees are prohibited, since Reg Reps will not be
able to afford to serve this market segment, which is dominated by small
accounts.  Customers who want minimum fees and no service have outlets
available to them already.  If 12b-1 fees are elimnated, a huge segment of
customers will be without service.  It will not be practical to set up
Registered Investment Advisor agreements with hudreds of small account
holders to replace the revenue lost on the 12b-1 fees.

Jim McGuinness