From: Daniel B. Jones
Sent: July 9, 2007
Subject: File No. 4-538

Ladies and Gentlemen:

With regard to the discussion on 12b-1 fees and their place in our industry, I suggest that the removal of such compensation will severely impact the small investor. It will no longer be possible to provide service for smaller client accounts. As it stands now, annual fees on an account of $50,000 will generate $125 in Gross Commissions to the B/D. Of the $125 individuals like me may receive anywhere from 35-80% of the gross. If my payout rate is 60%, this 12b-1 fee will create net revenue of $75 annually. If my assistant, whom costs me approximately $30 per hour, spends 2 hours within a year answering questions on the phone, changing an address, making trades within a fund family, or processing a disbursement from the account I will have spent the remaining $15 on rent, internet service, computers, utility payments and the list goes on. There is absolutely no profit in this arrangement as it stands now. I have an obligation to people that rely on me for advice to provide this service. Why would I even entertain the thought of providing service when I am guaranteed to lose money? From a business perspective, I deal with individuals across many lines of financial services and generate revenue from insurance and investment products. In erasing the 12b-1 fee from mutual fund clients, it will create a need for financial representatives to sell other products. We know what happens when individuals have to "push" a product. The consumer is once again the one that loses.

Thank you,

Northwestern Mutual Financial Network

Daniel B. Jones, CLU. ChFC
Financial Representative

2709 Genesee St, Suite 200, Utica, NY 13501