Subject: File No. SR-NASD-2006-124
From: William R Sykes, CFP
Affiliation: President, Sykes Financial Services LLC, Member NASD

December 28, 2006

NASD firms that are exempt from carrying SIPC coverage should be exempt from this rule.

This rules imposes another expense on NASD member firms with minimal benefit to their clients. SIPC insurance provides the coverage that clients need, in the unlikely event that the coverage is ever needed. And at the time of the need they will certainly be made aware of it.

This again will be another unnessary non critical information item that is mailed out to clients and is ignored by the majority as gobble-dee-gook.

NASD members resources should be spent on better serving and protecting their clients and making certain that critical complaince issues are being addressed.