Subject: File No. S7-25-99
From: Kathleen M. Rehl
Affiliation: Certified Financial Planner

August 29, 2004

Comment on File No. S7-25-99
SEC Broker-Dealer Rule Exemption

I urge the SEC to WITHDRAW and not just amend this rule proposal. I believe the rule is harmful to consumers because it creates two different standards of conduct for persons offering financial planning services: a higher fiduciary standard for registered investment advisers RIAs and a lesser one under NASD suitability rules. The rule also exempts, in effect, brokers from being required to disclose conflicts of interest in connection with the offer of financial planning services.

Allowing brokers to infer that they have a fiduciary relationship to a client, when in fact they do not, is the kind of thinking that has caused many scandals in our profession and undermines public confidence in financial advisors.

Those of us who accept fiduciary responsibility and act as agents of our clients ought to be clearly differentiated from salespeople who are working for the interests of a warehouse or other financial institution.

Thank you.