Subject: File No. S7-25-99
From: Christine Pawlenty

September 16, 2004

On November 4, 1999 the SEC proposed a rule entitled Certain Broker-Dealers Deemed Not To Be Investment Advisers the Rule. This proposed Rule eliminated special compensation as a factor that would require broker-dealers to register as an investment adviser, while permitting a broker-dealer to provide investment advice to customers, regardless of the form of its compensation, provided: i the advice is provided on a non-discretionary basis ii the advice is solely incidental to the brokerage services and iii the broker-dealer discloses to its customers that their accounts are brokerage accounts.

I believe the Rule 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 under the Act and a lower standard of suitability rules under NASD rules.