Subject: File No.
From: Paul Colasante
Affiliation: Registered Representative

November 2, 2010

I have been in the Financial Services business for 26 years. Though I support the new SEC rule 12b-2, I strongly disagree with the provision to allow broker dealers the ability to set their own sales charges and commissions.
This rule would hurt the middle to lower market investor who would not have the asset power to generate reduced fees that larger clients will be able to get. Even if these lesser investors could get the breaks, economies of scale would dictate that they would be set up under some form of automated account. This practice is already in place at many broker dealers. Though the SEC is trying to protect the smaller investor, this rule change would help the larger investor at the expense of the smaller investor.
I truly hope the SEC will reconsider its position on this and realize what the negative consequences will be.