July 10, 2007
Dear Ms Morris:
I am a fully licensed professional insurance and mutual funds salesperson with over 22 years in the business. I read that the SEC was considering removing 12b-1 fees from mutual funds. I receive renewal commissions through this charge to the mutual fund which affords my clients my expertise in properly allocating their money into various types of investments. I have never had a client of mine object to this charge in their mutual funds and to the contrary, I have had a number of them offer to pay me for my expertise and I told them I was compensated through the mutual funds. Some people prefer to have me actively manage their money and these accounts had charges of .8% to 1.25% depending on the amount invested. These fees are fully disclosed when the client starts the plan just the same as the clients for mutual funds are told the the internal fees from me and prospectus provided.
For these and other reasons I urge the SEC to reject any proposal to eliminate or restrict the payment of 12b-1 fees to registered reps for providing continued service to our clients. Thanks in advance to your consideration on this matter.