From: Jennifer Baron
Sent: July 14, 2007
Subject: File No. 4-538

To whom it may concern,

It would be a terrible mistake to remove 12b-1 fees from the current compensation structure of mutual funds. In reality an increase in those fees would better suit the public than an elimination of those fees. When Registered Representatives are continually and evenly compensated for the continued advice, research and services they provide to their current clients, the need to find new clients and dilute the amount of time they are able to devote to current clients is dramatically reduced.

It seems there is a need for a clearer understanding of exactly how the Registered Representative is of service to the client and a realistic approach to keeping the public informed of fees for those services. A blanket approach to “eliminating” what is not clearly understood is of no benefit to anyone and will actually hurt the parties you are trying to protect.

The public should be made fully aware of exactly what expenses they are paying and what they should expect in return for those expenses, but elimination of those expenses because they are misunderstood or have the reputation as being "hidden"is a disservice for all parties.


Jennifer Baron
Registered Representative-NY