From: Lamaute Capital 
Sent: Tuesday, April 23, 2002 7:13 AM
Subject: File No. S7-10-02 Comments

The rule would require that 90% of the adviser's
clients obtain their investment advice exclusively
through the interactive website. Is 90% of clients the
appropriate percentage? If not, what higher or lower
percentage should we consider?

90% OF CLIENTS IS AN APPROPRIATE PERCENTAGE. 

Should we require that these clients obtain all of
their advice from the adviser through the interactive
website? Alternatively, should we consider permitting
an adviser to use the rule even if these clients
obtain less than all of their advice through the
website? If so, what proportion should we require? How
would the adviser measure that proportion? What burden
would this measurement place on the adviser?

THE CLIENTS SHOULD BE ABLE TO RECEIVE LESS THAN ALL OF
THEIR ADVICE THROUGH THE WEBSITE AS LONG AS THE CLIENT
RESULTED FROM THE WEBSITE.  FOR EXAMPLE, THE CLIENT
MIGHT PREFER TO RECEIVE SOME INFORMATION SUCH AS A
NEWSLETTER THROUGH REGULAR POSTAGE MAIL.
THE RULE SHOULD DEFINE INTERACTIVE WEBSITE ADVICE TO
ALSO INCLUDE TELEPHONE ADVICE SINCE SOME CLIENTS WOULD
WANT TO CALL IN WITH QUESTIONS AND WOULD FEEL MORE
COMFORTABLE DOING PART OF THEIR DUE DILIGENCE OR
DISCUSSING HIGHLY CONFIDENTIAL MATTERS OVER THE
TELEPHONE.

Are there other types of investment advisers - without
assets under management but operating in many states -
that face similar burdens? How many of these advisers
are there? In how many states do they typically
register? Should we also consider exempting them from
section 203A?

THE COMMISSION SHOULD ALSO CONSIDER EXEMPTING SMALL
INTRODUCING BROKERAGE FIRMS THAT MAY ALSO BE RIAs