Subject: File No. S7-03-13
From: George Blumel

September 10, 2013

Dear Elizabeth Murphy:

The stable $1 net asset value is a regulatory fiction that creates moral hazard and mis-allocation of resources.  Regulators should keep their hands off market-generated prices.

Regulators seem to think that by simply decreeing something to be so --it is!  But it isn't --it is what it is.  Let the markets work. 

Maybe investment firms and advisers will be more careful having to deal realities of the market instead of regulatory fictions.



George Blumel