May 23, 1999

Jonanthan G. Katz

Securities and Exchange Commission

450 5th Street, NW

Washington, DC

20449-0609

Subject: File S7-10-99 / Cross-Border Trading

Our firm, a long-standing member and supporter if IFIC, considers the current initiative, affecting Canadians residing in the U.S., of priority. We are supportive of the comments put forward by IFIC for your consideration.

The proposed rules are an important step toward allowing Canadian dealers to fulfil their fiduciary duty relating to administration of Registered Retirement Savings Plans [RSP] for out-of-country clients. Although, in most cases RSP’s are not active for the lack of qualified income, there is still considerable maintenance, such as, investment selection changes and foreign content adjustments.

Since it generally is not advantageous to collapse retirement plans before needed, Canadians residing in the U.S. with securities in their plans are at risk. If they collapse plans, they face a significant tax burden that will erode their retirement sources. On the other hand, if they do nothing, they risk foreign content penalties due to Revenue Canada rules; capital erosion due to the inability to replace inappropriate investments; and, investments that may no longer match their risk profile and objectives.

To that end, exemptive relief to dealers in addition to mutual fund managers is necessary in order to make the proposed rules effective.

Your consideration is appreciated.

Respectfully Yours,

VP, Compliance