Subject: File No. S7-25-99
From: Dennis Eisenberg
Affiliation: United Staff Union Pension Committee Chair , CMFC

August 25, 2004

I urge the Commission to withdraw, not amend, the rule proposal exempting broker-dealers from the Investment Advisers Act of 1940 when offering fee-based brokerage programs.

The rule is anti-competitive by creating two standards of conduct for persons offering financial planning services: one for registered investment advisers and one under NASD suitability rules.

The rule is anti-consumer, by permitting non-disclosure of conflicts of interest by registered representatives.

This is the wrong solution to a complex problem and will ultimately dummy down fiancial assistance to the general public.