From: Michael Fay [michael@claremontfinancial.com]
Sent: Friday, May 07, 2004 1:10 PM
To: rule-comments@sec.gov
Subject: File No. S7-09-04

I am in favor of retaining the modest 12-b-1 fee paid to registered
representatives who sell mutual funds for two reasons:
1. If a rep gets no ongoing compensation they may be tempted to ignore a
service request while they search for new commision sources, or worse,
orphan a non-producing account;
2.  If a rep gets no ongoing compensation they may be more tempted to turn
their book to generate compensation (speculation on my part).