Subject: File No. S7-25-99
From: Joseph R Pennington, CFP
Affiliation: Fee Only Financial Advisor

August 23, 2004

I have been a practicing financial advisor for 23 years. I was registered with the SEC and am now licensed by the State of Arizona. During my 23 years of practice, I have not heard of a fee only registered investment advisor providing financial planning services being sued or haveing a complaint filed with the SEC or the State of Arizona, although it has probably happened. However, I have on numerous occasions heard of registered representatives of a Broker/Dealers and Broker/Dealers being subject to arbitration or sued for violation of securities laws. To exempt the culprits from the fiduciary standard and disclosure of conflicts of interest when offering fee based, fee offset, or fee only financial planning services is to invite the fox into the hen house. Proposed Rule 72599 should be withdrawn and then issue a Rule that creates a safe environment for the public being served.