July 19, 2007

I am writing to express my concerns about the SEC's ongoing review of Rule 12b-1. All class of Americans need the continuing service, guidance and support that are provided by independent financial advisors to achieve their stated investment goals. 12b-1 fees provide a very high undisclosed cost that owners of these products should not have to have, while at the ame time your committe should be looking into the Broker Dealers that force there brokers to sell a certain level of production of these products to keep there broker contracts active. This act forces the honest people like myself to be forced to be terminated from Broker Dealers because I do not push fees and trailer commissions like 12b1 fees like the B/D want me to.

If you really were looking out for the comsumers you would in fact make all these funds and or broker dealers disclose tax and opportunity cost on each of these investments. Many times the only real benefactor is the broker dealers.

.Expanding Investor Choice - The multiple share classes made possible by Rule 12b-1 give investors very littel choice and strong adice to reaching the truth becaseu these financial advisors are in bed with the broker dealers. These12b-1 fees are a corrupt way of stealing from Mom & Pop and giving money to the broker dealers.

.Supporting Financial Literacy - Mutual funds do disclose opportunity cost on there dividends and capital gains tax on there monthly statements, confirmations, prospectuses, annual reports, and other materials. Financial advisors serve the vital role of educators by helping investors to make sense of these essential materials, but they are placed intoa position by contract with there broker dealer to make lost of money or they are terminated.

.Managing Client Expectations - The broker dealer makes it impossible to manage client expectations because they are all to interested in no disclosing teh truth about the products they sell. Sure the B/Ds want you to think its the the common mistakes investors make; buying high and selling low, chasing past performance and harboring unrealistic expectations. This information chases you away fro the the truth.

.Subsidizing Additional Services - Independent financial advisors should be allowed to do what is right by the consumer without the worry of termination of there B/D. This issue of 12b 1 fees has nothing to do with important services that should be provided by a broker.

In conclusion, while it is reasonable to review the investor issue's about 12b-1 fees, it is obvious that the repeal of 12b-1 should be immediately placed into law. Please don't forget about the small time producer broker that does what is in the best interest of the client but gets pushed out by the Broker Dealer in which he is licenesed with.

As a result, I urge the SEC to terminate the allownace of the Rule 12b-1. PLease suppoirt the efforts of truth so that all class of American investors can stand a fighting chance for prosperity.


Mr Tim Cooper CRFA
Creative Wealth Systems