Subject: File No. S7-15-10
From: Robert B. Frohman, CLU, ChFC

October 27, 2010

Dear SEC:

I am concerned about some of the proposed changes to rule 12b-1. My understanding is you would maintain the .25% fee that is currently used to compensate us for ongoing service to our clients. However, you, also, wish to allow broker-dealers (BDs), not the fund managers, to set sales commission levels and sales charges and such to be paid directly by the investor. Your assumption seems to be that doing such would "level the playing field and reduce costs." Instead, I believe it will cause BDs to slash fees in order to gain market share leaving the investors who can't afford assets under management arrangements with little or no representation, because registered reps won't be compensated enough to be able to afford an meaningful level of individual advice and services that these investors currently receive. I encourage you to not legislate fees to the extent that middle market investors will lose access to the valuable guidance AND services we provide.


Robert B. Frohman, CLU, ChFC