Subject: File No. 4-606
From: Joseph M Cates

July 30, 2010

To whom it may concern,

I have been in the business of selling investments and insurance for the past 3 years. My father has been in the business for 30 years. My grandfather before him an additional 30 years. Currently I meet with my compliance officer once a year to make sure I am meeting the requirements and guidelines of not only SEC but of what my employer New York Life sets forth. I send in weekly my 3010 logs to make sure that all correspondence between my clients and I is documented. My email is monitored by our company to make sure that I am compliant. I attend a Firm Element meeting every year to stay abreast of the current regulations as well as understand how vulnerable I am to being sued for misrepresentation, violating do-not call lists, etcetera. I treat my clients the same way my grandfather had. The first question is whether its in the best interest of the client what I am recommending. That entails a simple series of questions my grandfather asked. Do they want it? Do they need it? Can they get it? And finally can they afford it? We never sell someone something they can't afford.
Currently compliance is a huge cost to our company. As a result of that those costs are then passed down to the consumer. The more regulations and compliance that is passed means more cost to the consumers. Which if I am correct we are trying to protect the consumers as well as make sure that they can afford to do business with us for their own savings and retirement goals. If we can't provide that service, then in turn those consumers will rely on government programs.
I hold my Life, Accident, and Health license as well as have my Series 6 and 63. In order to keep my 6 and 63 I have to produce so much business or I will have to pay a fee to continue to sell my companies products. In every state I wish to do business I need to be licensed as well as appointed by the company(ies) I do business with. These all are costs I pay for out of my own pocket. It seems as though I provide a service that doesn't pay that well that will continue to cost me more money and if this legislation passes more headaches. All I try to do is be fair to my clients and do right by them. Criminals will exist because of their mentality and sociopathic ways. They will not be eliminated through laws and regulations. Those who want to cheat the system will find ways to do it. Unfortunately those individuals not only cost the consumer money whether it be by swindle or misrepresentation and they also cost the companies they represent due to lawsuits. These costs and consequences are all passed down to the consumer. If the company doesn't make money then they raise their prices. Its a simple concept. Please heed my words and make the right decision.

With Respect and Hope,

Joe Cates

Joe Cates