Subject: File No.
From: Hollis O Inglett, Jr.
Affiliation: National Association of Insurance and Financial Advisors

October 27, 2010

Registered Representatives serving the middle class will become like the fewer and fewer Health Insurance agents who serve the middle class. Both Mutual Funds and Health Insurance require a substantial amount of service by knowledgeable experts. When service fees (12b-1) or renewal commissions decline one of two things happen:
1- Less and less service for the consumer
2- More and more licensed Reps and Agents leave the business
I question both being a possible intent
You would think Mutual Fund Companies and Health Insurance Companies would provide service. They often do however both are complicated products and the typical middle class consumer may not always understand. It takes a qualified Rep. or Agent to walk the consumer through the maze of products, contingencies and legal contracts. Have you ever been advised on making a minor beneficiary of your IRA or Qualified Retirement Plan? We especially have to correct miss information and misleading information provided by Mutual Fund and Insurance Companies.
If 12b-1 fees are reduced or elimated I will no longer be selling or servicing Secutiies. FYI, I am no longer selling Health Insurance because of reductions in commissions. My earnings have decreased and I can't help but notice all the Insurance marketing material to the consumer promoting "go direct" and cutting out the agent. This will happen to Securities sales if 12b-1 fees are reduced. The consumenr is not served when all they have is a Customer Service Rep and Company's word or information which may not be in the consumers best interest.