From: eConstituentMailer@votenet.com
Sent: Thursday, April 29, 2004 4:30 PM
To: Rule-Comments
Subject: Comments to SEC on 12b-1 Fees: File No. S7-09-04

Dear Mr.  Jonathan Katz: 
I would like to voice my concerns about the possibility of 12b-1 fees being 
eliminated.   I feel strongly that securities and their sale should be regulated 
and I support strong consumer protections, but I feel that this proposal is 
anti-consumer.  I am keenly aware of how large brokerages have cut staff and 
services to their smaller clients since the downturn of the market in the last 
few years.  Many of the customers that I speak to are frustrated that they are 
"too small" an investor to rate any sort of service or advice.  12b-1 fees are 
what allow me to help a client who may only have a few hundred dollars to start 
out with to get some professional advice and for me to be compensated for that 
and future assistance.  Eliminating these fees would mean that once an account 
is opened, there is no compelling reason for a professional to assist someone 
other than conscience.  If conscience were all that was needed for everyone, 
there would be no need for any sort of regulations at all.  We know that this is 
not the case. True professionals will assist their clients and they should be 
compensated for the effort and expense that they put into maintaining their 
competency and sharing that expertise with their clients. 

I believe the elimination of 12b-1 fees would do considerable harm to those 
investors who need and want ongoing investment planning advice and counsel. A 
significant majority of my clients expect our office to be available and to 
respond quickly to a variety of questions regarding their investments. I have 
never received complaints from my clients about the small amounts they are 
charged for the assistance I provide in helping them address their various 
investment and planning questions. My clients expect me to be compensated for 
helping them achieve their long-term financial goals. 

For the above reasons, I urge the SEC to reject any proposal to eliminate or 
restrict the ability of mutual funds to pay 12b-1 fees to registered 
representatives for providing continued service to their clients. Thank you for 
your consideration of my views on this subject.


Sincerely, 


 
 
,