From: Fred Nicol [frednicol@wyoming.com]
Sent: Friday, April 30, 2004 12:43 PM
To: rule-comments@sec.gov
Subject: File No. S7-09-04

I am a licensed insurance professional and mutual fund salesperson in Wyoming.  
Because of the inappropriate practices of some mutual fund companies that have 
recently been in the news, I commend the SEC and the Congress of the United 
States to eliminate these practices.  However, I am concerned about the 
possibility that the industry may be restricted to pay 12b-1 fees to registered 
representatives in the effort to stop the inappropriate practices.  12b-1 fees 
really does help cover the costs of providing ongoing services to our mutual 
fund clients.  

12b-1 fees are a very modest cost to the investor expecting that ongoing 
services be provided to them.  On a $10,000 investment in A-shares, the 12-b1 
fee is only about $25 per year and is shared by the broker-dealer and the 
representative.  By eliminating this fee, I believe there would be significant 
harm done to those investors who need and want ongoing investment planning 
advice and counsel.  My clients expect me to be compensated for helping them 
achieve their long-term financial goals.  For this reason, I urge the SEC to 
reject any proposal to eliminate or restrict the ability of mutual funds to pay 
12b-1 fees to registered representatives for providing continued service to our 
clients.

Thank you for considering my views.