Subject: File No. S7-06-04
From: Kenneth Scribner

March 19, 2004

I am writing in response to the proposed legislation regarding the elimination of 12B-1 fees in Mutual Funds - The Mutual Fund Reform Act of 2004.

I am opposed to this Act.

I have been a Registered Investment Advisor for 25 years. I have NEVER had a compliance problem. I have always treated my clients with respect and consideration giving them impeccable service by putting their interests first.

A bill eliminating fees paid to licensed, honest Investment Advisors would only serve to encumber the Advisors and would not further protect the investing public. Honest Advisors will find other suitable places to invest their clients that WILL pay fees since no one works for free. Dishonest Advisors could just resort to switching clients from one fund to another in order to get up-front fees. Consequently, no one is served by this Act as it will not protect the investing public. All it will serve to do is further encumber honest Investment Advisors and guarantee that clients get less service from good advisors. This will have a horrible impact on the Financial Services Industry.

A reduction or elimination of 12B-1 fees will drive me, the honest Investment
Advisor, out of business. Additionally, several people are dependent on this office for income and their jobs will be gone as well.

I would support legislation for greater disclosure although Im not sure that it is needed.