From: BRAD.SKILES [brad.skiles@kconline.com]
Sent: Thursday, April 29, 2004 9:04 PM
To: rule-comments@sec.gov
Subject: File NO. S7-09-2004

Dear Mr. Jonathan G. Katz, Secretary/Securities and Exchange Commission



I am a licensed insurance professional, registered representative, and
registered investment advisor representative.  I appreciate the work the SEC is
doing to eliminate unlawful conduct in the mutual fund industry.   Many changes
were needed and are being pursued.  I’m writing to express concern about the
consideration for a complete elimination of 12b-1 fees.  



I would estimate that 80% of my clients with mutual funds expect me to service
their changing needs.  My client base is not looking to me for a one-time
transaction; nor do I look to them for simply a product sale.  If there was a
single compensation for a mutual fund, there would be no way to be compensated
for years of future service … other than to try to make new sales—which would be
a terrible business plan.  The block of business I have pays me a minimal trail
fee which helps me justify the annual reviews I do with my clients.  For the
client with an “A” share, the annual “12b-1 fee” on a $10,000 investment would
cost him or her about $25 per year.  From that $25, I receive about $15.  For my
business, that adds up to about $18,000 which helps provide the income for this
type of service.



When I sell a mutual fund, my promise to the client is to meet at least annually
to review the funds and their objectives.  A one-time sales commission would not
permit me to do that … year-after-year.  If my client wanted to simply buy a
mutual fund as a commodity--without any future advice or service--they could do
that through a no-load company.  



I urge the SEC to reject the idea to eliminate 12b-1 fees.  Eliminating this
service fee would hurt the consumer whom you are trying to protect.



Thank you for considering this.



Brad Skiles

Woolman Financial Group

119 E. Center St.

Suite B-3

Warsaw, IN  46580

Phone 574-269-6592



Registered Representative and Investment Advisor Representative, 
Securian Financial Services, Inc., Securities Dealer, Member NASD/SIPC 
A Registered Investment Advisor 
3230 Central Park West, Suite 100 
Toledo, OH 43617 
(419) 843-4737