Subject: File No.
From: M Paul DeFelice, CLU, ChFC, MSFS
Affiliation: CVP Tarining, New York lIfe

October 31, 2010


I have been a licensed insurance professional and registered representative with New York Life for 31 years.
I support new SEC rule 12b-2, which would continue the 25 basis points fee that is used to ensure investors receive ongoing service and advice, and the SECs proposed use of the terms marketing and service fees and ongoing sales charge in place of 12b-1 fees to improve transparency in disclosure documents.
However, I strongly object to the SEC permitting mutual funds to issue a new class of shares at net asset value that would allow broker-dealers to set their own sales charge and commission amount.
Competition based on price and cost sounds good but will come at the expense of needed advice and service for middle market investors.
If this new rule is passed, only upper-income investors who can afford assets-under-management arrangements will continue to receive personalized investment advice.
People who cannot afford specialized advisors will be hurt as they could be deprived of the guidance and service they need and deserve.