Subject: File No. 4-606
From: Robert O. Smith, JD ChFC
Affiliation: Trustee, NAIFA

August 24, 2010

In my former practice as an attorney I know the implications, requirements, higher standards of responsibility, education, liability, etc. involved in being a fiduciary. Unless the SEC creates a new definition for the term which dilutes the common law standard for a fiduciary, this action will most hurt the people the law was intended to protect, namely the little guy with the small account.
I wil no longer be able to afford the time and money required to service a small account under a fiduciary standard as I have understood the term for 35 years.
I cannot emphasize to you more strongly that this decision could lead to the gravest of unintended consequences. Please be assured that I trust that the rules generated by the SEC would be reasonable and drafted with the best of intentions. However, you will be pricing financial services out of the reach of a large block of the American population with small accounts. You absolutely have to address this issue should you decide to go forward with a fiduciary standard.
Thank you for your consideration. You are going to have a big problem applying Tiffany standards to Wal-Mart customers. Good luck to you and God bless.
Rob Smith