From: Jonathan Thornberry [jonathan@rpschicago.com]
Sent: Thursday, July 25, 2002 3:36 PM
To: rule-comments@sec.gov
Cc: Carole Peck
Subject: File No. S7-25-99

To Whom It May Concern,

I am writing in protest to voice my concern regarding the proposed 
SEC Rule, "Certain Broker-Dealers Deemed Not To Be Investment Advisers." 
As a member of the financial planning community I am extremely concerned 
that exclusion of "Certain Broker-Dealers" from uniform standards of 
conduct will have a negative impact on the financial planning profession, 
but most importantly it would negatively impact clients. 
 
Allowing "Certain Broker-Dealers" to offer comprehensive financial planning 
advice without being subject to registration under the Investment Advisers 
Act of 1940 or similar state laws is a mistake. The Investment Advisers Act 
of 1940 was adopted to protect the consumer by ensuring that advisers 
maintained proper disclosure and fiduciary standards. It would be wrong to 
allow fee-based financial planning programs -- already heavily marketed by 
large Wall Street firms - to be viewed as "solely incidental" to the firms' 
brokerage services, even though the advice is the primary service offered. 
Such programs would permit broker-dealers to avoid the higher fiduciary 
standards of investment advisers to their clients, as well as the comprehensive 
disclosure of conflicts of interest and other information about the advisory 
firm required by the Advisers Act. 
 
This proposed rule poses the greatest threat to investor protection of any 
SEC rule in recent memory. Rules and regulations should be drafted and enacted 
to protect the consumer, not make them more vulnerable. In the current climate 
of fear and frustration with corporations and the investment markets, approving 
this proposed rule will only add fuel to the fire of investor mistrust and 
skepticism.
 
Sincerely,
Jonathan Thornberry
On behalf of myself and Carole J.A. Peck, MBA, CFP, President
Retirement Planning Strategies, Ltd



 
Jonathan Thornberry
Client Services Representative
Retirement Planning Strategies, Ltd.
~Celebrating 15 Years of Excellence  1987 - 2002 ~
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