S7-09-04From: August DiVito [adivito@investmentplanninggroup.com]
Sent: Thursday, May 06, 2004 1:20 PM
To: rule-comments@sec.gov
Subject: S7-09-04

Gentlemen, 

The proposed rule in Release No IC-26356 prohibiting the use of brokerage 
commissions, including 12b-1 fees to finance the distribution of mutual funds is 
not beneficial to the shareholder because it will open the door to other 
problems that will be difficult to contol. i.e. fair practices in fee 
arrangements.  The current system has proven to be highly successful for the 
past 50 years and the problems being experienced at this time is a result of 
rapid growth in the industry.  These problems can be fixed without throwing the 
baby out with the bath water.  The public, as a rule, receives valuable 
assistance from independent broker for which no charge is ever required. i.e. 
asset inventory, emergency death bed transactions, catalyst for legal and 
accounting services, availability for adjusting investment assets because of 
life changes.  The current system creates a partnership between the shareholder 
and the broker without the interference of billing for every minute of 
communication.  To take all this away from the investing public will be a 
disservice and drive highly trained and educated brokers from the industry.  We 
already see this result with clients who are reluctant to call an attorney for 
advice because of the need to bill for every minute of communication.  
Furthermore, the proposed change will place emphasis of transactions to generate 
commissions rather than providing well planned investment programs that require 
substantial amount of preliminary work to determine suitability and to "get to 
know your client".

Thank you for your consideration.