Subject: File No.
From: Peter M Smith

October 27, 2010

I have been a licensed insurance professional and registered representative for sometime now. I support the new SEC rule which would continue the 25 basis points fee that is used to insure investors will recieve ongoing service and advice .
However I strongly object to the SEC permitting mutual funds to issue a new class of shares at NAVthat would allow BDs to set hteir own sales chargeand commission ammount.
The UNINTENDED consequences of this action ( and these always happen when government tries "level the playing field" ) are that the people who need our advice the most( the small investor ) will not be called on by advisors as we all gravitate to "assets under management arrangemnts"which only those investors with ample assets can afford. Thus the people you are trying to protect will be "frozen out" of the most experienced advisors.
Finally, has anyone done a study on how many unemployed advisors you will add to the existing 17% of those Americans un or under employed ? Maybe they can all go to work for the SEC
Peter Smith