Subject: File No. S7-06-04
From: David Daughters

March 30, 2005

Dear Sir,

In reviewing your proposed rule regarding point of sale disclosure, I believe you are overlooking an important point that could influence mutual fund investors.

Suitability and diversification are extremely important to meet financial goals. Annual fund costs and commission charges, already disclosed in fund prospectus literature, should not be the deciding factor on which funds to purchase.

I am concerned that your proposed rule would have the unintended consequence of causing investors to equate suitability and appropriateness with the lowest cost product.

This nations Wal-Mart mentality has no place in how an investor decides which mutual fund to purchase.

For this reason, I believe this proposal would do more harm than good to this nations investors and should not be adopted as proposed.

Thank you for the opportunity to comment on this proposed rule.