From: Robert A. Hazard |
As a registered representative of a small independent B/D, I wish to comment on behalf of and in favor of the 12b-1 rule. The majority of my clients are teachers with 403(b)(7) plans, most of which are relatively small portfolios of $5,000 to $30,000. Now that several of my clients and the impending wave of them are about to retire and stop making their contributions, they have been requesting assistance in managing their retirement. This service will only increase for me. For many of my clients, the ceasing of contributions means the loss of my commissions. The 12b-1 fees even though small in size help to defray many of the services that I provide my clients. Besides the marketing costs, they help to cover phone calls, travel and visits to meet with them, my time and advice, reports, and the postage that goes with all of this. As a broker and advisor providing a variety of valuable services, we deserve to be compensated for such. Since I offer my products by either fee-based or commission, my base is relatively small to begin with. Many small B/Ds and reps could not survive without the 12b-1 fee compensation. Robert A. Hazard |