Subject: File No. S7-25-99
From: Ray Franklin

November 06, 2004

William Donaldson

Dear Donaldson,

Instead of creating a division between brokers and investment advisers based on the nature of the services they offer, this SEC rule proposal would expand the brokers' exclusion from the Advisers Act to include instances in which the broker receives special compensation for advice. This is exactly the wrong direction for the agency to be taking.

I have learned some expensive lessons at the hands of brokers. Time and again, a broker would call me with advice about a hot stock, and talk me into investing. Repeatedly, the stock would rise briefly, then drop, leaving me with substantial losses. In each case, the order confirmation always noted that the order was "Unsolicited."

I now know better, and I consider all recommendations from brokers to be fraudulent. Don't make others learn the way I did. Keep brokers and investment advisors well-divided. This new rule makes it even easier for sleazy brokers to pass off sales pitches as investment advice. I want to know my investment advisors are independent, honest, and not motivated by conflicting interests. Please abondon this rule change.


Ray Franklin
705 Eastdale Dr
Fort Collins, CO 80524-3428