From: Ragu Raghuraman [sraghura@prodigy.net]
Sent: Friday, January 23, 2004 4:43 PM
To: rule-comments@sec.gov
Subject: S7-04-04:

Regulators would go a long way toward cleaning up a big chunk of unethical 
activity by instituting these ideas: 

1) Eliminating Class B & C mutual fund shares. 

2) Lowering the maximum 12-b1 fee to 0.25%.

3) Stop the practice of charging 12-b1 fees when a fund is closed for new 
investor.

4) Investigating the corrupt practice of selling annuity contracts with 
surrender charges (and multi-year surrender periods)to our senior citizens.

5) Stop the corrupt practiice of selling annuities inside another tax sheltered 
plans.

6) Prevent the current corrupt practice of insurance companies preventing all 
403b plans from offering no-load funds for investiing  by the participants.

7) Examine the suspected widespread kickbacks to 401k plan administrators 
selecting load fund only in a 401k plans and fleecing poor captive participants.

8) Require everyone who calls themselves "financial planners" or "investment 
advisors" to abide by the rules that CFP credential people and RIAs must already 
adhere to. In fact, someone who calls himself/herself a financial planner should 
be required to obtain the CFP credential.

8) Require the disclosure of how every planner, advisor, salesperson, and their 
companies are paid. This should be either via a contract that spells out how the 
client is paying, or, to the extent possible, what the actual costs will be. If 
the SEC and NASD don't have the guts to eliminate B and C shares, disclosure of 
up front and annual trail commissions should be required disclosures.

9). Require all registered reps, including bank salespersons and their 
supervisors, to complete annual training in what it means to be a fiduciary. 
This would include why some products are not just wrong for certain consumers, 
but why they are also unethical and should not be allowed.