Subject: File No. S7-06-04
From: Gary G. Wierzbicki, Agent
Affiliation: State Farm Insurance
March 30, 2005
I am a licensed insurance agent and variable product agent for State Farm Insurance and have been for the past 32 1/2 years. The new disclosure rules that the SEC is proposing for the sale of mutual funds and variable products are unnecessary and will provide no meaningful protection for the consumer.
The prospectus already has the information regarding fees, expenses and risks. Why not improve on what we have. There is no need to reinvent the wheel. It is my job to discuss the fees with my client but they also have some responsibility. Our clients always, always, always understand that there is risk associated with the purchase of a variable or mutual fund product.
Having a disclosure fee that addresses only fees and expenses will have the client thinking only about cost rather than overall return. What's' better, a return with low expenses and a 2 % return or an investment with twice the expenses and an annual return of 8%???
I urge the NASD to withdraw the proposed rule. Thank you for considering my views.
Gary G Wierzbicki, Agent
State Farm Insurance