Subject: File No. S7-25-99
From: Bryan P Day
Affiliation: Member, Financial Planning Association

August 23, 2004

Dear Sirs:
Re: Keep the 1940 Act Strong and Universal.

Please do not make the mistake of exempting broker-dealers from the Investment Advisers Act of 1940 when they are offering fee-based brokerage programs. To do so would place the investing public at substantial risk.

I strongly urge the Commission to WITHDRAW, not amend, the Broker/Dealer exemption rule proposal. As a fee-based financial planner and an active FPA member I believe an exemption for broker dealers is harmful to consumers by creating two different standards of conduct for persons offering financial planning services: a higher fiduciary standard for registered investment advisers and a lower one under NASD suitability rules. The rule also exempts, in effect, brokers from being required to disclose conflicts of interest in connection with the offer of financial planning services.

Thanks for your consideration.
Bryan P. Day