Subject: File No. S7-25-06
From: Thomas Hardy
Affiliation: Adjunct Professor of Finance, Cleary University

January 26, 2007

I see no reason why the net worth requirements should be increased from $1 million to $2.5 million. Rather, I would suggest that lowering the net worth requirement makes more sense than raising it. As there tends to be a correlation between risk and return, in allowing only the wealthy to make certain higher-risk investments, you further increase the disparity between the wealthy and the middle class. Within the context of a well diversified portfolio, even risky assets can contribute to a lowering of overall portfolio risk. Thank you.