Subject: File No. S7-15-10
From: John E. Hill, CTS, RFP
Affiliation: The PlanSource, L.P.

August 19, 2010

Dear Ms. Murphy;

The proposed changes to Rule 12b-1 are going to seriously impact the servicing level that my clients have come to expect from me as their financial advisor. I have been in the business for more than 20 years, and rarely have I seen a client leave my practice, and NOT ONCE has there EVER been a complaint about the 12b-1 fees that are paid in order to continue maintaining oversight of their investments, proper allocation changes in the event of life period changes or lifestyle changes, and overall relationship management. These fees, which generally amount to .25% (25 basis points) enables advisors to continue servicing a client in a manner that takes into consideration the nature and scope of work involved, as well as the amount of time necessary to properly maintain oversight of the client`s changing needs, which is beyond all doubt a RELATIONSHIP issue. It is unfortunate that you have decided to make this a political issue, because without 12b-1 fees, most clients will simply be left to their own devices after the first year. Another purpose of these fees is to continue to provide updated education for our clients, the vast majority of whom maintain some level of financial ambiguity and vagueness most of the time because they are busy doing what they do best, and that is, earning a living for their families. Having a solid, knowledgeable advisor does not come free. A final comment.I am not only a registered representative, but am also a Series 65 licensed Investment Advisor which allows me to charge advisory fees. It is my belief that you will see a proliferation of people going to fee-based advisors as opposed to registered representatives. The problem is that, without significant capital to invest, most fee-based advisors have a minimum investment requirement, such as $500,000. Which means that the very people who need our help will not get it because you insist on removing our compensation for ongoing servicing years. All in all, changing the 12b-1 rule simply tells me you may be completely out of touch with mainstream America, whom incidentally I meet with at kitchen tables all over the city to assist them with THEIR financial planning needs. Please DO NOT penalize these people.

John E. Hill, CTS, RFP
Certified Tax Specialist and
Registered Financial Planner
The PlanSource, L.P.