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U.S. Securities and Exchange Commission

Request for the Commission to Amend Rule 206(4)-1(a)(1) under the Investment Advisers Act of 1940 Concerning the Use of Testimonials by Investment Advisers Who Are Also Planners

[File No. 4-489]

From: Chris Grande
Sent: Friday, October 03, 2003 5:30 PM
To: rule-comments@sec.gov
Subject: use of testimonials by an IAR who is also a planner?


I'd like to comment on rule 206(4)-1a1 concerning testimonials used by advisors.

I am a small practice financial planner appointed as an IAR - and the rule prohibits me from using testimonials with my planner clients because of my IAR designation. I would like to see a ruling allowing a planner to use non-performance based testimonials with prospective clients.

For example, I got, just this week, 2 mail offers: one from an options report, and one from a currency report telling me about the spectacular returns i could get- and both reports were accompanied by testimonials - now I assume that both of these newsletter reports are exceptions to the Act but still, they can promise that, but an advisor cant offer testimonials on such things as how diligent they are, how much service they provide, the overall quality of the client experience.

I think that disallowing testimonials based on performance for advisors is admirable, and correct. however, the restriction placed on planners who happen to also be advisors is limiting because their practice encompasses the overall client relationship and not just investment performance.

In summary, I would like to see considered a follow up ruling concerning planners who also are advisors and their use of testimonials not based on financial performance -specifically, to find some way to allow that and allow us the same ability to use them as an RR has.

thank you for your time.


Chris Grande

Walnut Hill Advisors
407R Mystic Avenue - 34C
Medford, MA 02155
781.393.0021 (phone)
781.391.4125 (fax)



Modified: 11/03/2003