Subject: File No. 4-538
From: Albert C Krempa, Jr
Affiliation: Registered Representative since 1972

June 15, 2007

12b1 fees let me service my clients accounts without thinking I have to sell them something to pay for my time. Without those fees, I'm convinced there would be a lot more churning of accounts by reps. Most of my clients are retired, not making contributions to there investments accounts, but rather making withdrawals, so 12b1 fees let me continue to service these clients. Without these fees, forcing clients to go into a wrap type account or a brokerage type account would cost them more money as I still need to be compensated for my time and the wrap or brokerage type account costs money, so the clients would be the big looser - their fees would actually be higher netting them a lower return.
Change the defination of what 12b1 means, but dont hurt the investing public or those reps who are trying to serve their clients in the least costly way.
I've been in this business since 1972 (Series 1 license - not many of us still around) and I've met a lot of clients over the years who were hurt by reps who were more concerned with their commission income than with helping their clients. I am afraid that removing 12b1 fees would put more reps into that uncaring category.