From: Rick Garlick []
Sent: February 25, 2004
Subject: File No. S7-03-04

It seems totally appropriate to prevent fund "advisors" from chairing he board of directors of the fund. In fact, in view of the inherent conflict of self-interest between the fund stockholders and the advisors, advisors should be barred from the board, or, at least, officers of the advisor should be of limited term. In view of the power of the chair of a board, including recognition of those who wish to add material to a meeting's agenda, the advisor should not be permitted to hold the chair.

The inherent conflict of interest is best described as that between a seller and a buyer; the seller wants as much of the buyer's money as possible while the buyer wishes to pay as little as possible. For the seller of services, the advisor, to chair the board of the buyer, as is now permitted, encourages the kind of actions that have recently been uncovered: those that benefit the advisor and hurt the fund.