Subject: File No. S7-09-04
From: Lynn Ezerski

June 28, 2004

I strongly disagree with the potential discontinuation of 12b-1 fees. As a Registered Rep and principal, the 12b-1 fees allow us to provide continued service to clients, especially to one time purchasers. One time investments occur due to rollovers, inheritances, bonuses, etc. As a broker, I do a retirement/goal plan for most every client, regardless of how much they invest. Therefore, my initial commissions just cover the large amount of time I spend obtaining that client. The 12b-1 fees are negligible for most clients usually 1/4 of 1 percent, but with a group of clients, it provides a steady stream, all-be-it small stream, of income. This is a very volatile business and we usually do not get payment for work we have done for 1-3 months. The 12b-1 fees help soften the unsteady income we face in this business.

With how difficult it is to obtain new clients in this business, the higher costs of Errors and Omissions Insurance, and the cost of being independent, we need the income from 12b-1 fees. Most brokers are honest, hard-working and deserve every penny they receive. There are many brokers being driven out of the business because of the costs mentioned above. Do not drive anymore out. Thank you, Lynn Ezerski