Subject: File No. S7-09-04
From: Eva G Patry

June 9, 2004

Most of my clients do not pay an Advisory Fee for service. They have smaller accounts less than 250Kbut nevertheless meet with me twice yearly min. once per yr.
I provide a lot of on-going service to my clients, for which I do not receive a fee. The only small compensation is the on-going 12b-1 fee. Many of those clients CHOOSE not to pay a fee.... or are against Managed Accounts for a fee. Advisory fees are not for everyone So... that would leave out a whole group of clients who need us.... and yet we would be working for free for all those years of continuing service I have clients that have been with me for 13 years. My only compensation for continuing service is that small trail.
I - and so many of my colleagues - believe that there is a group of people for whom owning mutual funds is a good fit. They prefer not going to the market on their own, for fear of making bad choices.
If some financial planners are misusing funds or not providing service, why should the rest of us - who put the clients first - be punished?
It seems to me that it should remain a viable option, for those who choose not to have a Managed Account or who are not high networth clients.
The up-front fees A shares are usually well-earned, because of the time spent educating the clients, preparing research and a plan for them, meeting with them a 2nd and/or 3rd time and finally going through all the paperwork. We are certainly not overcompensated - if we do our job well.
Perhaps we need to eliminate from the industry those who give us a bad name... and those who dont care about anyone but themselves.
In my area, an awful lot of churning goes on and elder abuse from the insurance industry, who pose as financial planners. They sell their fixed products to whomever they can feed - and vulnerable adults are taken. Id like to know who is watching the insurance industry? Why are they not under the microscope as we are - for the good of the public?? Doesnt seem fair
Thank you for listening and taking my comments under consideration. Ive been licensed since 1989.