From: Joan Halstead [jhalstead@mscmail.biz]
Sent: Friday, May 07, 2004 11:55 AM
To: rule-comments@sec.gov
Subject: s7-09-04 Mr. John Katz

Dear Mr. Katz:

I'm upset that the SEC seems to be over-reacting to the Mutual Fund "scandals" 
by punishing the registered reps.

I can't understand why the 12-b-1 fee is seen as unnecessary.  I spend many 
hours servicing my clients, which involves phone calls, stamps, secretary time 
and my sales time.  Why wouldn't I get remuneration for this??  Isn't the 
service what my clients need and want from me?  A big difference between my 
type service and internet service is the ability of my clients to TALK to me 
and to DISCUSS their goals and investments.  The 12-b-1 fee is simply a way to 
reimburse me for this service.

I do not charge a fee for this communication, but I'm afraid I will have to 
charge an advisory fee if the 12-b-1 fee is eliminated.   I assure you it will 
be higher than the one inherent in the mutual funds!!

Please reconsider changing this fee.

Thank you
Joan M. Halstead
Registered Rep since 1980
3810 St. Paul Bl
Rochester NY 14617
585.266.5202




Securities and advisory services offered through Mutual Service Corporation.  
Mutual Service Corporation is a Registered Investment Advisor and a Member 
NASD/SIPC