Subject: File No. S7-25-99
From: George E. McCarthy

September 11, 2004

To whom it may concern:

As an active investor, I urge you to withdraw the Broker-Dealer Rule Exemption. This Rule permits stockbrokers to avoid revealing conflicts of interest to prospective clients. My experience: A neighbor who was a broker in the Philadelphia office of Merrill-Lynch called me to tout McDonald's stock. I bought 100 shares. The stock did nothing and, in fact, lost. Several months later, he admitted that M-L had offered a bonus to its brokers to move the stock as it had contracted to move a number of shares. Lesson learned. I have always used a member of the Financial Planning Association as an advisor since that experience. Please withdraw the Rule.


George E. McCarthy
419 Riverview Rd
Swarthmore, PA 19081