From: Jeff Levering [Jeff.Levering@newriver.com] Sent: Thursday, April 08, 2004 9:21 AM To: rule-comments@sec.gov Subject: S7-06-04: Mr. Jonathan G. Katz Secretary, SEC 450 Fifth Street, NW Washington, D.C. 20549 Via e-mail: rule-comments@sec.gov In re: New Confirmation and Point of Sale Disclosure Requirements Dear Mr. Katz: We have read with considerable interest the recent S.E.C. proposals around new Confirmation and Point of Sale Disclosures for mutual fund trades. We believe ensuring that investors are better informed about the cost of their mutual transactions will deepen the relationship between an advisor and the investor. We would suggest, however, that as written the proposal focuses almost entirely on “what the investor paid” versus “how the investor could have paid less”. Said differently, the proposal recommends disclosing information such as the price paid per share, the gross and net amount invested, and the dollar amount the investor paid in front-end sales commission. What the proposal does not provide are ways to ensure the investor knows that they have the option to further reduce or even eliminate the commission paid. Some information that could be disclosed to an investor includes: In Fund “A” an investor may have the option to include the balances held by a family member to reduce their commission. In Fund “B” they may have the option to pay no commission at all if the purchase was made from the proceeds of a competitor’s fund or if they are an employee or trustee of the fund being sold. In Fund “C” they may have the right to include purchases made 90 days ago with a purchase made today to get a reduced commission under a letter of intent. These rules are by nature complicated, and although technically available to an investor they are buried deep in the prose of a fund’s prospectus or statement of additional information, making them difficult to find or fully understand for many investors. We would suggest the proposal be amended to require firm’s to also disclose in readily understandable form the commission reducing rules to both ensure the investor is well informed, as well as to protect the advisor about options he or she is legally bound to know, at the time a mutual fund sale is made. Best Regards, Jeff Levering This e-mail is the property of NewRiver, Inc. The information transmitted is confidential and may be privileged, and is only intended for the recipient to whom it is addressed. Any review, distribution, dissemination, reliance upon or other use of this information by persons other than the intended recipient is prohibited. NewRiver makes no representations or warranties of any kind, whether express or implied, with respect to the information. NewRiver and the sender shall have no responsibility or liability for any reliance on the information. If you have received this e-mail in error, please notify the sender by reply e-mail and delete and destroy any copies of this e-mail.