From: Marty Cohen [martycohen@sbcglobal.net]
Sent: Saturday, June 14, 2003 5:38 PM
To: rule-comments@sec.gov
Subject: Att: Jonathan Katz (s7-10-03)

To: Jonathan G. Katz, Secretary
Securities & Exchange Commission
450 Fifth Street N.W.
Washington D.C., 20549

From: Martin Cohen, President
Balanced Financial Securities
P.O. Box 969
Rockwall, TX 75087
CRD 7735

RE: SR- NASD-2002-162

I am a fully disclosed broker dealer licensed to conduct business in Texas.

Balanced Financial Securities is a small broker dealer, primarily conducting
investment banking activity. I have one representative that I oversee and
audit on a regular basis. The requirement that the audit of my
representative be independent of supervisory function is impractical and
cost prohibitive.

The larger independent broker dealers with whom I network are concerned
about the ever-changing myriad of rules and regulation who are already
spending a great deal of executive time and resources to assure
representatives are complying with securities laws and NASD regulation.

The current regulatory rules provide the framework for oversite and
compliance without creating greater complexity and expense.

Sincerely


Martin Cohen