Subject: File No. S7-25-99
From: Kalman J. Lester

August 24, 2004

I urge you to WITHDRAW your proposal (proposed/s72599&file_num=S7-25-99) to exempt broker/dealers (or any other financial organizations) from the requirements set forth in the Securities Act of 1940 when they offer fee-based brokerage programs.

Proposal S7-2599 would be extremely detrimental to the investing public, if Broker Dealers are NOT required to be subject to Oversight by the SEC, and the NASD.

Kalman J. Lester