From: Jim Thiele |
I am writing to express my concerns about the SEC's ongoing review of Rule 12b-1. I have been a financial advisor for well over 20 years. My practice has always been based upon a "buy and hold" purchase of "A" shares. Many of my clients have been teachers and employees of non profit organizations who contrbute montly to 403-B accounts. At this time my major focus is service to my existing clients, and I can tell you that as they approach the complexities of retirement, my services are more vital than ever! These services are supported almost exclusively by 12b-1 fees. If rule 12b-1 were repealed I would be forced to convert all of my clients to a fee basis. Because of the overheaded involved in that process, the asset based fees charged would be at least 4 times as high as clients currently pay via "trails". Many of my small clients would have to go - but where? This cannot be in the best interest of anyone! It is reasonable to review the investor benefits of 12b-1 fees, but it is obvious to me that the repeal of 12b-1 has the potential to cause great harm to thousands of individual investors who need the support and service of a trained financial advisor. As a result, I urge the SEC to allow Rule 12b-1 to continue to support my efforts to provide needed financial services to middle class American investors pursuing their financial goals. Sincerely, Jim Thiele CFP
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