Subject: File No. S7-09-04
From: Paul R Hoffman

May 6, 2004

Jonathan G. Katz, Secretary
U.S. Securities Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609

Dear Mr. Katz,

There are many reasons why this proposed rule change is not a good idea. I know that many people are expressing and emphasising these reasons. I only want to bring out and highlight one main point. For the investing public that have limited resources this rule change is likely to increase the cost of investing several fold.

Currently, after paying the sales load the smaller clients are paying the servicing representative .25 annually. If that servicing fee were elliminated, most if not all, the representatives would be forced to change the client relationship into a fee based RIA relationship. In that type of relationship the normal fees charged to the client are closer to 1 much higher for smaller accounts.

By implementing the suggested rule change it would in effect save the investing public .25 annually but then they would be charged 1 - 2 annually in fees. This doesnt save the clients any real money.