Subject: File No. S7-25-99
From: Eric G. Shisler, CFA

September 20, 2004

U.S Securities and Exchange Commission
Comments on File No. S7-25-99

As a member of a fee-only Registered Investment Adviser RIA firm, I am opposed to the broker-dealer exemptions to the Investment Advisers Act of 1940 as provided for under the proposed rule Certain Broker-Dealers Deemed Not To Be Investment Advisers Release Nos. 34-42099 IA-1845 File No. S7-25-99, and request that the Securities and Exchange Commission withdraw the proposed rule.

Under this proposed rule, it is my understanding, that this exemption allows broker-dealers to avoid the blanket fiduciary protections of the Investment Advisers Act of 1940, and therefore, is detrimental to consumer protection. I believe this proposed rule inappropriately allows stockbrokers to misrepresent their fundamental sales role as one of a fiduciary adviser receiving a fee for advice. Further, it places RIAs at a competitive disadvantage by allowing brokers to market similar programs under less rigorous regulatory standards for disclosure and advertising.