From: John W. Loyd
Sent: June 13, 2007
Subject: 12b-1 fees

Just my humble opinion, but taking away 12b-1 fees would seem to do more harm than good. Any business owner/service provider must be compensated for the value they provide. Take away the 12b-1 fee compensation to advisors, and you will be left with accounts that are generating no revenue. There is too much liability and effort in financial planning to provide a service yet not get paid. If the 12b-1 fee is taken away, advisors will be forced to switch consumers to alternate (revenue producing) vehicles, and this may or may not be in the best interest of the consumer.

I suggest you leave the 12b-1 fee as is, and if the consumer dislikes the fee, he or she always has the choice to request a different investment arrangement.

Thank you,
John W. Loyd, CFP(r)