Subject: File No. S7-06-04
From: David W. Shepherd, ChFC, CFP


Mr. Jonathan G. Katz, Secretary
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609

Re: SEC Proposal on Point of Sale and Confirmation Disclosures

Dear Mr. Katz:

I am always concerned by increased regulation that misses the mark on what it is supposed to fix and instead increases the burden placed on the small, independent financial advisor that already places his client’s interests first.

1. This system could have the unintended consequence of limiting choice to the consumer. Also, the more time I have to spend with “unnecessary compliance”, (compliance that doesn’t work), the less time I can meet with clients, do planning, research, and educate myself so I can serve my clients properly.

2. While cost is an important factor in any investment decision, it’s not the only one and needs to be made in the proper context.

3. The complexity of the proposal runs the risk of further confusing investors.

My recommendation: I have no problem with a system of full disclosure of appropriate information to consumers; we spend a lot of time educating consumers to help them make good decisions. But it needs to be done in a way that doesn’t punish the majority of practitioners who do a great job for the clients. Rethink the whole disclosure issue from prospectus to point of sale and confirmations. But don’t do it with band aids that will create a patch work of regulations that will make it harder for us to help people who need help.


David W. Shepherd, ChFC, CFP
Tucson, AZ