August 24, 2004
I believe that full disclosure of conflicts of interest in fee-based programs is the key to an effective Rule. Regulatory reforms since the Rule was first proposed now routinely require disclosure of conflicts material to the point-of-sale transaction and customer relationship.
I believe that it is time for the Commission to restore functional regulation of investment advice under federal securities laws. Investors will benefit through consistent and comprehensive disclosure of conflicts and the related fiduciary protections of the Advisers Act by withdrawing the Rule.
I strongly encourage the Commission to use investor focus groups to help create meaningful disclosure guidelines, similar to its decision to use investors in evaluating mutual fund sales.